Issue Information

Published date01 January 2019
Date01 January 2019
VOLUME 30, NUMBER 1 January 2019
5The Feds Chair Background and the Federal Reserve Independence
Damir Tokic
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

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