Volume 19, Issue 2 (6-2024)
J. Mon. Ec. 2024, 19(2): 189-210 |
Back to browse issues page
Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
Amjadian Y, Borhani A. The Role of Ownership Structure in Enhancing Transparency and Disclosure in Tehran Stock Exchange Banks. J. Mon. Ec. 2024; 19 (2) : 3
URL: http://jme.mbri.ac.ir/article-1-695-en.html
URL: http://jme.mbri.ac.ir/article-1-695-en.html
1- Department of Accounting, Qo.C., Islamic Azad University
2- Department of Accounting, Qo.C., Islamic Azad University. Qom, Iran
2- Department of Accounting, Qo.C., Islamic Azad University. Qom, Iran
Abstract: (1421 Views)
Transparency can be defined as the provision of sufficient, relevant, and reliable information for stakeholders. Due to numerous limitations, transparency and disclosure remain a challenge in the Iranian banking sector. Therefore, the aim of this study is to examine the impact of ownership structure on the transparency and disclosure of banks. To assess ownership structure, three variables are used: the percentage of shares held by the largest shareholder, the percentage of shares held by institutional shareholders, and the percentage of shares held by individual investors. The research method is of a correlational type in terms of content and nature. This study is applied in terms of its goal and is quantitative in nature based on the data. Statistical analysis was conducted on the information of 13 banks listed on the Tehran Stock Exchange during the years 2014 to 2022. An ordinary least squares (OLS) estimator with fixed-year effects and Stata software version 17 were used to test the research hypotheses. The results of this study show that the variables of individual investors' shares, the largest shareholder's shares, and institutional shareholders' shares have the most significant impact on the transparency and disclosure of banks, respectively. These findings indicate that the presence and influence of individual investors, large shareholders, and institutional shareholders each play a crucial role in improving the transparency and disclosure of banks.
Article number: 3
Keywords: Transparency and Disclosure, Ownership Structure, Major Shareholder, Individual Investors, Institutional Investors.
Type of Study: Original Research - Theoric |
Subject:
Monetary Economics
Received: 29 Apr 2025 | Accepted: 5 Jun 2025 | Published: 29 Jun 2025
Received: 29 Apr 2025 | Accepted: 5 Jun 2025 | Published: 29 Jun 2025
References
1. Allen, F., Babus, A., & Carletti, E. (2012). Asset Commonality, Debt Maturity, and Systemic Risk. Journal of Financial Economics, 104(3), 519-534. [DOI:10.1016/j.jfineco.2011.07.003]
2. Amidjaya, P. G., & Widagdo, A. K. (2019). Sustainability Reporting in Indonesian Listed Banks: Do Corporate Governance, Ownership Structure, and Digital Banking Matter? Journal of Applied Accounting Research, 21(2), 231-247. [DOI:10.1108/JAAR-09-2018-0149]
3. Andreyevskaya, O., & Semenova, M. (2014). Transparency and Bank Competition. Journal of Financial Regulation and Compliance, 22(3), 233-247
4. Barry, T. A., Lepetit, L., & Tarazi, A. (2011). Ownership Structure and Risk in Publicly Held and Privately Owned Banks. Journal of Banking & Finance, 35(5), 1327-1340. [DOI:10.1016/j.jbankfin.2010.10.004]
5. Bateni, L., Vakilifard, H., & Asghari, F. (2014). The Influential Factors on Capital Adequacy Ratio in Iranian Banks. International Journal of Economics and Finance, 6(11), 108-116. [DOI:10.5539/ijef.v6n11p108]
6. Berle, A., & Means, G. (1932). The Modern Corporation and Private Property. New York: Macmillan.
7. Bhimavarapu, V. M., Rastogi, S., & Kanoujiya, J. (2023). Ownership Concentration and Its Influence on Transparency and Disclosures of Banks in India. Corporate Governance: The International Journal of Business in Society, 23(1), 18-42. [DOI:10.1108/CG-05-2021-0169]
8. Bushman, R. M. (2016). Transparency, Accounting Discretion, and Bank Stability. Economic Policy Review, Issue Aug, 129-149.
9. Byun, H. Y., Hwang, L. S., & Lee, W. J. (2011). How Does Ownership Concentration Exacerbate Information Asymmetry Among Equity Investors? Pacific-Basin Finance Journal, 19(5), 511-534. [DOI:10.1016/j.pacfin.2011.06.002]
10. Chakroun, R., Matoussi, H., & Mbirki, S. (2017). Determinants of CSR Disclosure of Tunisian Listed Banks: A Multi-Support Analysis. Social Responsibility Journal, 13(3), 552-584. [DOI:10.1108/SRJ-04-2016-0055]
11. El-Diftar, D., Jones, E., Ragheb, M., & Soliman, M. (2017). Institutional Investors and Voluntary Disclosure and Transparency: The Case of Egypt. Corporate Governance: The International Journal of Business in Society, 17(1), 134-151. [DOI:10.1108/CG-05-2016-0112]
12. Fakhr-Hosseini, S. F., & Kavyani, M. (2023). The Impact of Comprehensive Financial Disclosure on Bank Performance: The Moderating Role of Market Competition and Ownership Structure. Strategic Research in Budgeting and Finance, 4(3), 107-131. [In Persian]
13. Flannery, M. J., Kwan, S. H., & Nimalendran, M. (2004). Market Evidence on the Opaqueness of Banking Firms' Assets. Journal of Financial Economics, 71(3), 419-460. [DOI:10.1016/S0304-405X(03)00185-5]
14. Garcia-Meca, E., & Sanchez-Ballesta, J. P. (2010). The Association of Board Independence and Ownership Concentration with Voluntary Disclosure: A Meta-Analysis. European Accounting Review, 19(3), 603-627. [DOI:10.1080/09638180.2010.496979]
15. Gillan, S. L., & Starks, L. T. (2003). Corporate Governance, Corporate Ownership, and the Role of Institutional Investors: A Global Perspective. Journal of Applied Finance, 13(2), 4-22. [DOI:10.2139/ssrn.439500]
16. Grossman, S. J., & Hart, O. D. (1980). Disclosure Laws and Takeover Bids. Journal of Finance, 35(2), 323-334. [DOI:10.1111/j.1540-6261.1980.tb02161.x]
17. Hashemi, E., & Chavoshi, S. K. (2023). The Impact of Risk-Taking, Capital Adequacy, and Corporate Governance on the Performance of Tehran Stock Exchange Banks. Strategic Research in Budgeting and Finance, 4(4), 93-116. [In Persian]
18. Haque, F., & Brown, K. (2017). Bank Ownership, Regulation, and Efficiency: Perspectives from the Middle East and North Africa (MENA) Region. International Review of Economics & Finance, 47(1), 273-293. [DOI:10.1016/j.iref.2016.10.015]
19. Hossain, M. (2008). The Extent of Disclosure in Annual Reports of Banking Companies: The Case of India. European Journal of Scientific Research, 23(4), 660-681.
20. Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure. Journal of Financial Economics, 3(4), 305-360. [DOI:10.1016/0304-405X(76)90026-X]
21. Jiang, H., & Habib, A. (2009). The Impact of Different Types of Ownership Concentration on Annual Report Voluntary Disclosures in New Zealand. Accounting Research Journal, 22(3), 275-304. [DOI:10.1108/10309610911005590]
22. Jones, J. S., Lee, W. Y., & Yeager, T. J. (2012). Opaque Banks, Price Discovery, and Financial Instability. Journal of Financial Intermediation, 21(3), 383-408. [DOI:10.1016/j.jfi.2012.01.004]
23. La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (1999). Corporate Ownership Around the World. Journal of Finance, 54(2), 471-517. [DOI:10.1111/0022-1082.00115]
24. Martinez Peria, M. S., & Schmukler, S. L. (2011). Do Depositors Punish Banks for Bad Behavior? Market Discipline, Deposit Insurance, and Banking Crises. Journal of Finance, 56(1), 1029-1051. [DOI:10.1111/0022-1082.00354]
25. Mehrani, S., & Mohammadi, F. (2021). Investigating the Impact of Banking Opacity on the Ability of Regulatory Authorities to Implement Forbearance Policies. Accounting and Auditing Reviews, 28(3), 487-506. [In Persian]
26. Mertzanis, C. (2024). Central Bank Policies and Green Bond Issuance on a Global Scale. Energy Economics, 133, 107541. [DOI:10.1016/j.eneco.2024.107541]
27. Morgan, D. P. (2002). Rating Banks: Risk and Uncertainty in an Opaque Industry. American Economic Review, 92(3), 874-888. [DOI:10.1257/00028280260344506]
28. Nahar, S., Azim, M., & Jubb, C. A. (2016). Risk Disclosure, Cost of Capital, and Bank Performance. International Journal of Accounting & Information Management, 24(4), 476-494. [DOI:10.1108/IJAIM-02-2016-0016]
29. Nair, R., Muttakin, M., Khan, A., Subramaniam, N., & Somanath, V. (2019). Corporate Social Responsibility Disclosure and Financial Transparency: Evidence from India. Pacific-Basin Finance Journal, 56(1), 330-351. [DOI:10.1016/j.pacfin.2019.06.015]
30. Nguyen, J. (2012). The Relationship Between Net Interest Margin and Noninterest Income Using a System Estimation Approach. Journal of Banking & Finance, 36(9), 2429-2437. [DOI:10.1016/j.jbankfin.2012.04.017]
31. Ozili, P. K., & Uadiale, O. (2017). Ownership Concentration and Bank Profitability. Future Business Journal, 3(2), 159-171. [DOI:10.1016/j.fbj.2017.07.001]
32. Qu, W., Leung, P., & Cooper, B. (2013). A Study of Voluntary Disclosure of Listed Chinese Firms - A Stakeholder Perspective. Managerial Auditing Journal, 28(3), 261-294. [DOI:10.1108/02686901311304376]
33. Rahman, N., & Reja, B. (2015). Ownership Structure and Bank Performance. Journal of Economics, Business and Management, 3(5), 483-488. [DOI:10.7763/JOEBM.2015.V3.232]
34. Shahbazi Ghyasi, M. (2024). Investigating the Factors Affecting Banking Transparency in Iran: A Panel Data Approach. Strategic Research in Budgeting and Finance, 5(3), 65-89. [In Persian]
35. Sheikhi, K., Matinfard, M., Saeidi, E., & Hasani, M. (2022). Identifying Potential Corporate Governance, Disclosure, and Transparency Factors Affecting the Evaluation of the Quality of Bank Financial Statements Using Fuzzy Delphi Method. Asset Management and Financing, 10(2), 23-52. [In Persian]
36. Shleifer, A., & Vishny, R. W. (1986). Large Shareholders and Corporate Control. Journal of Political Economy, 94(3), 461-488. [DOI:10.1086/261385]
37. Silva, B., Azúa, D., Díaz, P., & Pizarro, V. (2008). The Influence of Institutional Investors on the Transparency of the Chilean Capital Market. Academia. Revista Latinoamericana de Administración, 40(1), 54-67.
38. Srairi, S. (2019). Transparency and Bank Risk-Taking in GCC Islamic Banking. Borsa Istanbul Review, 19, 64-74. [DOI:10.1016/j.bir.2019.02.001]
39. Sufian, M. A., & Zahan, M. (2013). Ownership Structure and Corporate Social Responsibility Disclosure in Bangladesh. International Journal of Economics and Financial Issues, 3(4), 901-909.
40. Turrent, G., & Ariza, L. R. (2012). Corporate Information Transparency on the Internet by Listed Companies in Spain (IBEX35) and Mexico (IPYC). The International Journal of Digital Accounting Research, 12(1), 1-37. [DOI:10.4192/1577-8517-v12_1]
41. Vig, S., & Datta, M. (2018). Corporate Governance and Value Creation: A Study of Selected Indian Companies. International Journal of Indian Culture and Business Management, 17(3), 259-282. [DOI:10.1504/IJICBM.2018.094582]
42. Zhang, Y., Chong, G., & Jia, R. (2019). Fair Value, Corporate Governance, Social Responsibility Disclosure, and Banks' Performance. Review of Accounting and Finance, 19(1), 30-47. [DOI:10.1108/RAF-01-2018-0016]
43. Zheng, C., Moudud-Ul-Huq, S., Rahman, M. M., & Ashraf, B. N. (2017). Does the Ownership Structure Matter for Banks' Capital Regulation and Risk-Taking Behavior? Empirical Evidence from a Developing Country. Research in International Business and Finance, 42(1), 404-421. [DOI:10.1016/j.ribaf.2017.07.035]
| Rights and permissions | |
 |
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. |
