Bank Asset and Informational Quality

30 Pages Posted: 5 Feb 2020 Last revised: 25 Feb 2020

See all articles by George Kladakis

George Kladakis

University of Sheffield

Lei Chen

University of Sheffield, Management School

Sotirios K. Bellos

affiliation not provided to SSRN

Date Written: January 13, 2020

Abstract

We examine the relationship between bank asset and informational quality. We use a diversified panel of 699 banks from 84 countries and measure opacity (lack of informational quality) with rating disagreements between issuer-specific ratings by three credit rating agencies (S&P, Moody’s and Fitch). Results from panel ordered logit regressions show that poor asset quality increases the probability of greater credit rating disagreements. Considering that the recent regulatory frameworks require from banks to reduce the worrying levels of non-performing loans and to increase transparency in their risk-taking, our findings have important policy implications.

Keywords: banks, opacity, split ratings, asset quality

JEL Classification: G20, G21, G28

Suggested Citation

Kladakis, George and Chen, Lei and Bellos, Sotirios K., Bank Asset and Informational Quality (January 13, 2020). Available at SSRN: https://ssrn.com/abstract=3518046 or http://dx.doi.org/10.2139/ssrn.3518046

George Kladakis (Contact Author)

University of Sheffield ( email )

17 Mappin Street
Sheffield, Sheffield S1 4DT
United Kingdom

Lei Chen

University of Sheffield, Management School ( email )

17 Mappin Street
Sheffield, Sheffield S1 4DT
United Kingdom

Sotirios K. Bellos

affiliation not provided to SSRN

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