Last Updated on October 5, 2023 by Fiza Khurram
Fizza Irfan and Muhammad Usman of the University of the Punjab’s Hailey College of Commerce conducted a thorough investigation on the complex link between risk disclosure, voluntary disclosure, corporate governance, and the value of banks in Pakistan.
The research, which spans the years 2011 to 2020, draws a sample from the complete population of banks listed on the Pakistan Stock Exchange. The study analyses how voluntary and risk disclosures affect bank value, with an emphasis on the moderating role of corporate governance. STATA 15.0 software will be used to analyse data gathered from annual reports of 20 publicly listed commercial banks.
Voluntary disclosure, risk disclosure, corporate governance, and bank value are among the characteristics under consideration, as evaluated by two proxies: market-based Tobin’s Q and financial stability-based Z score. It is worth noting that the study is limited to commercial banks listed solely on the Pakistan Stock Exchange, omitting those listed on the State Bank of Pakistan owing to data restrictions.
The predicted findings of this research are important for the financial industry because they provide a more sophisticated view of the relationship between disclosure practises, corporate governance, and the total value of banks. The study adds unique views to the wider dialogue on financial disclosure and governance by concentrating on the characteristics of the Pakistani situation.
Finally, this study is prepared to give practical insights for banking stakeholders, regulators, and scholars, providing light on the mechanisms that define the value of banks in Pakistan’s distinctive financial market context.
