Non-financial disclosure and market-based firm performance: The initiation of financial inclusion

Sudipta Bose, Amitav Saha, Habib KHAN, Shajul Islam

    Research output: Contribution to journalArticle

    6 Citations (Scopus)

    Abstract

    We examine the association between financial inclusion disclosure and firm performance in Bangladeshi banks from 2009 to 2014 in response to a regulatory directive on the engagement of banking firms in financial inclusion activities. We find a positive association between financial inclusion disclosure and banking firms’ subsequent performance, with this relationship moderated by market competition and government ownership. We also find evidence that firms’ engagement in financial inclusion activities increases their market share, with the disclosure of this information reducing the information asymmetry between managers and capital market participants. The broad implication of our research findings is that firms considering investing in financial inclusion activities could benefit from improved firm performance and gain market share. The research findings contribute to the larger debate on the reasons why firms should consider incorporating these initiatives into their operational activities. In addition, the findings inform various international organisations that promote financial inclusion activities.
    Original languageEnglish
    Pages (from-to)263-281
    Number of pages19
    JournalJournal of Contemporary Accounting and Economics
    Volume13
    Issue number3
    DOIs
    Publication statusPublished - Dec 2017

    Fingerprint

    Financial disclosure
    Financial markets
    Financial inclusion
    Firm performance
    Disclosure
    Market share
    Banking
    Information asymmetry
    Government ownership
    Investing
    Market competition
    International organizations
    Capital markets
    Managers

    Cite this

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    abstract = "We examine the association between financial inclusion disclosure and firm performance in Bangladeshi banks from 2009 to 2014 in response to a regulatory directive on the engagement of banking firms in financial inclusion activities. We find a positive association between financial inclusion disclosure and banking firms’ subsequent performance, with this relationship moderated by market competition and government ownership. We also find evidence that firms’ engagement in financial inclusion activities increases their market share, with the disclosure of this information reducing the information asymmetry between managers and capital market participants. The broad implication of our research findings is that firms considering investing in financial inclusion activities could benefit from improved firm performance and gain market share. The research findings contribute to the larger debate on the reasons why firms should consider incorporating these initiatives into their operational activities. In addition, the findings inform various international organisations that promote financial inclusion activities.",
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    author = "Sudipta Bose and Amitav Saha and Habib KHAN and Shajul Islam",
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    Non-financial disclosure and market-based firm performance: The initiation of financial inclusion. / Bose, Sudipta ; Saha, Amitav ; KHAN, Habib; Islam, Shajul .

    In: Journal of Contemporary Accounting and Economics, Vol. 13, No. 3, 12.2017, p. 263-281.

    Research output: Contribution to journalArticle

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