Dynamics of Firm-Level Financial Inclusion: Empirical Evidence from an Emerging Economy

Journal of Banking and Finance Law and Practice, 2016, 27(1), 47-68

42 Pages Posted: 21 May 2016 Last revised: 19 Jul 2017

See all articles by Sudipta Bose

Sudipta Bose

Discipline of Accounting and Finance, Newcastle Business School, University of Newcastle Australia

Asit Bhattacharyya

University of Newcastle (Australia)

Shajul Islam

Stamford University Bangladesh

Date Written: May 15, 2016

Abstract

This article examines the financial inclusion disclosure practices of Bangladeshi banks from 2008 to 2013. The authors develop a financial inclusion index from the banking firm perspective to measure the level of financial inclusion disclosures in the annual reports and explore the potential determinants of such disclosures. The results demonstrate that the level of financial inclusion disclosures improved significantly after the central bank of Bangladesh released directive relating to financial inclusion. The results also indicate that the level of financial inclusion is positively influenced by banking firm size, growth opportunities, institutional investors, audit committee size and religion-based operations of the bank, whereas the percentage of female directors and firm age are negatively associated with the level of financial inclusion disclosures. The findings of this study should be of interest to managers, regulators and policy makers in countries that share similar financial systems.

Keywords: Financial inclusion, institutional investors, agency theory, institutional theory, corporate governance, Bangladesh

Suggested Citation

Bose, Sudipta and Bhattacharyya, Asit and Islam, Shajul, Dynamics of Firm-Level Financial Inclusion: Empirical Evidence from an Emerging Economy (May 15, 2016). Journal of Banking and Finance Law and Practice, 2016, 27(1), 47-68, Available at SSRN: https://ssrn.com/abstract=2782479

Sudipta Bose (Contact Author)

Discipline of Accounting and Finance, Newcastle Business School, University of Newcastle Australia ( email )

Sydney
Australia

HOME PAGE: http://www.newcastle.edu.au/profile/sudipta-bose

Asit Bhattacharyya

University of Newcastle (Australia) ( email )

University Drive
Callaghan, NSW 2308
Australia

Shajul Islam

Stamford University Bangladesh ( email )

744, Satmosjid Road
Dhaka, 1209
Bangladesh

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