Authors : Sheila Nu Nu Htay and Syed Ahmed Salman
Abstract: Banking industry is a backbone of any country’s economy. The crisis in banking sector will consequently cause the whole country’s financial crisis. Due to the nature of banking industry, risk is inherent in its activities and it should be managed with due care. Market discipline theory highlights the important role of information disclosure because investors will be well informed about the performance of the company and able to monitor and discipline the management. Thus, researchers believe that among the different types of information disclosure, the most significant information disclosure for the banks is related to operational and liquidity risk management. However, the research in this aspect is limited, especially in Malaysian context. The research is to explore the operational and liquidity risk information disclosure practices by Malaysian listed banks. The sample period covers from 2002-2011 for 5 listed banks. The findings show that overall, the disclosure on both operational and liquidity risk information disclosure is increasing over the sample period. It is expected that this research will be the interest of the investors, industrial players and regulators because the findings show the disclosure pattern of risk information disclosure. Since, this study is an exploratory in nature, researchers do not observe the determinants which influence on information disclosure. The future research should focus on it.
Sheila Nu Nu Htay and Syed Ahmed Salman, 2015. Operational and Liquidity Risk Information Disclosure Practices by Malaysian Listed Banks. International Business Management, 9: 60-64.