Readability and banks’ risk-taking behavior: Evidence from GCC

<p>We investigate the relationship between annual reports’ text readability and bank risk-taking in the Gulf Cooperation Council (GCC) countries. We find that easy-to-read annual reports are associated with a higher probability of banks’ insolvency. This finding suggests that banks with higher...

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Main Author: Bassam M. Abu-Abbas (21841610) (author)
Other Authors: Mostafa K. Hassan (21841613) (author)
Published: 2024
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author Bassam M. Abu-Abbas (21841610)
author2 Mostafa K. Hassan (21841613)
author2_role author
author_facet Bassam M. Abu-Abbas (21841610)
Mostafa K. Hassan (21841613)
author_role author
dc.creator.none.fl_str_mv Bassam M. Abu-Abbas (21841610)
Mostafa K. Hassan (21841613)
dc.date.none.fl_str_mv 2024-04-13T12:00:00Z
dc.identifier.none.fl_str_mv 10.1016/j.ribaf.2024.102367
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/Readability_and_banks_risk-taking_behavior_Evidence_from_GCC/29715137
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Commerce, management, tourism and services
Banking, finance and investment
Strategy, management and organisational behaviour
Annual disclosure
Text readability
Bank risk-taking
Gulf Cooperation Council
dc.title.none.fl_str_mv Readability and banks’ risk-taking behavior: Evidence from GCC
dc.type.none.fl_str_mv Text
Journal contribution
info:eu-repo/semantics/publishedVersion
text
contribution to journal
description <p>We investigate the relationship between annual reports’ text readability and bank risk-taking in the Gulf Cooperation Council (GCC) countries. We find that easy-to-read annual reports are associated with a higher probability of banks’ insolvency. This finding suggests that banks with higher risks have a greater incentive to reduce information asymmetry, resulting in easy-to-read annual reports to gain the trust of the banks’ investors. The result is also attributable to the fact that GCC banks have a tight culture and formal procedures that bank managers rely upon to manage uncomfortable circumstances like risk-taking behavior. Our study findings also suggest that the traditional dynamics of market discipline theory do not effectively operate within the GCC banking environment. This might be attributed to the inadequate governance frameworks established for these financial institutions.</p><h2>Other Information</h2> <p> Published in: Research in International Business and Finance<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.ribaf.2024.102367" target="_blank">https://dx.doi.org/10.1016/j.ribaf.2024.102367</a></p>
eu_rights_str_mv openAccess
id Manara2_8baf6cb647486de389664ac909bb5842
identifier_str_mv 10.1016/j.ribaf.2024.102367
network_acronym_str Manara2
network_name_str Manara2
oai_identifier_str oai:figshare.com:article/29715137
publishDate 2024
repository.mail.fl_str_mv
repository.name.fl_str_mv
repository_id_str
rights_invalid_str_mv CC BY 4.0
spelling Readability and banks’ risk-taking behavior: Evidence from GCCBassam M. Abu-Abbas (21841610)Mostafa K. Hassan (21841613)Commerce, management, tourism and servicesBanking, finance and investmentStrategy, management and organisational behaviourAnnual disclosureText readabilityBank risk-takingGulf Cooperation Council<p>We investigate the relationship between annual reports’ text readability and bank risk-taking in the Gulf Cooperation Council (GCC) countries. We find that easy-to-read annual reports are associated with a higher probability of banks’ insolvency. This finding suggests that banks with higher risks have a greater incentive to reduce information asymmetry, resulting in easy-to-read annual reports to gain the trust of the banks’ investors. The result is also attributable to the fact that GCC banks have a tight culture and formal procedures that bank managers rely upon to manage uncomfortable circumstances like risk-taking behavior. Our study findings also suggest that the traditional dynamics of market discipline theory do not effectively operate within the GCC banking environment. This might be attributed to the inadequate governance frameworks established for these financial institutions.</p><h2>Other Information</h2> <p> Published in: Research in International Business and Finance<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.ribaf.2024.102367" target="_blank">https://dx.doi.org/10.1016/j.ribaf.2024.102367</a></p>2024-04-13T12:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1016/j.ribaf.2024.102367https://figshare.com/articles/journal_contribution/Readability_and_banks_risk-taking_behavior_Evidence_from_GCC/29715137CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/297151372024-04-13T12:00:00Z
spellingShingle Readability and banks’ risk-taking behavior: Evidence from GCC
Bassam M. Abu-Abbas (21841610)
Commerce, management, tourism and services
Banking, finance and investment
Strategy, management and organisational behaviour
Annual disclosure
Text readability
Bank risk-taking
Gulf Cooperation Council
status_str publishedVersion
title Readability and banks’ risk-taking behavior: Evidence from GCC
title_full Readability and banks’ risk-taking behavior: Evidence from GCC
title_fullStr Readability and banks’ risk-taking behavior: Evidence from GCC
title_full_unstemmed Readability and banks’ risk-taking behavior: Evidence from GCC
title_short Readability and banks’ risk-taking behavior: Evidence from GCC
title_sort Readability and banks’ risk-taking behavior: Evidence from GCC
topic Commerce, management, tourism and services
Banking, finance and investment
Strategy, management and organisational behaviour
Annual disclosure
Text readability
Bank risk-taking
Gulf Cooperation Council