Issue Information

• Published date: 01 January 2019
• Date: 01 January 2019
• DOI: http://doi.org/10.1002/jcaf.22353

VOLUME 30, NUMBER 1 •January 2019

Editorial

5The Fed’s Chair Background and the Federal Reserve Independence

Damir Tokic

Features

14 Do Large European Banks Differ in their Derivative Disclosure Practices? A

Cross-Country Empirical Study

Enzo Scannella and Salvatore Polizzi

Risk disclosure has strategic importance for the efficiency of financial markets and overall

financial stability. It plays a pivotal role in strengthening market discipline and building trust to

improve relationships with stakeholders in banking. Risk reporting has taken a growing

importance in banking over the last years. The topic of this article is derivative reporting in

banking. The authors employ content analysis to conduct an empirical study on a sample of

large European banks. The authors propose a hybrid scoring model for the assessment of

derivative disclosure in banking institutions. The methodology employed in this research is

able to capture a considerable amount of information because it combines the characteristics

of a quantitative and qualitative analysis. This article provides evidences that banks differ in

their derivative reporting, although they are subject to similar regulatory requirements and

accounting standards. This empirical analysis shows that there is room to improve various

aspects of derivatives disclosure in banking and poses some questions that researchers may

develop with further empirical analysis. This article also discusses the potential policy

implications of the research findings for practitioners, bank regulators, and accounting standard

setters.