Release Time:2019-03-12  Hits:

Indexed by: Conference Paper

Date of Publication: 2014-01-01

Included Journals: CPCI-SSH

Page Number: 165-170

Key Words: commercial banks; voluntary disclosure; market discipline; subordinated debt

Abstract: Market discipline is one of the three pillars of Basel II. The information disclosure is the premise of market discipline. Voluntary disclosure, is an important source of information on the role of market discipline. In order to explore the effects of commercial banks' voluntary disclosure on market discipline in China, the paper examines the relationship between the level of Chinese listed commercial banks' voluntary disclosure and spreads of subordinated debt issued by the banks. The empirical results show that the effects of banks' voluntary disclosure on market discipline in China really exist and the effects are not obviously different among different banks.