Purpose

This study aims to determine the association of Transparency and Disclosure (TD) with financial distress (FID) while the competition (as Lerner Index) moderates the association between the two.

Design/methodology/approach

The panel data analysis (static model) is performed to examine the effect of disclosures on the bank's FID. A TD index is built to assess the level of TD. All three versions of Altman's Zscore are employed to measure a bank's FID (High Zscore is opposite of FID). The data of 34 banks running in India for the timeframe 2015–16 to 2018–19 is utilized. Lerner index (LI) is taken as the moderator. The bank-size, valuation and financial leverage are control variables.

Findings

There exists no linear connection between TD and FID. However, TD is positively associated with financial stability (opposite FID). It means TD initially reduces financial stability and improves it after TD crosses a threshold level. Competition (as LI, where the higher value of LI means reduced competition) negatively moderates the association of TD with financial stability. Hence, the findings of this study support the competition-fragility premise. Surprisingly, the negatively significant interaction term of LI and TD implies either high competition and high TD or low competition with low TD, which helps in the bank's financial stability.

Originality/value

The findings provide input to a long-term policy of disclosures and competition in the banking sector, keeping in view the financial stability of the banks. Therefore, findings are novel and carry immense value to the existing knowledge on the topic.

中文翻译：

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印度银行的公司披露和财务困境：竞争的调节作用

目的

本研究旨在确定透明度和披露 (TD) 与财务困境 (FID) 之间的关联，而竞争（作为勒纳指数）调节两者之间的关联。

设计/方法/方法

进行面板数据分析（静态模型）以检验披露对银行 FID 的影响。建立一个TD指数来评估TD的水平。所有三个版本的 Altman 的 Zscore 都用于衡量银行的 FID（高 Zscore 与 FID 相反）。使用了 2015-16 年至 2018-19 年期间在印度运营的 34 家银行的数据。以勒纳指数（LI）为调节因子。银行规模、估值和财务杠杆是控制变量。

发现

TD 和 FID 之间不存在线性关系。然而，TD 与金融稳定性正相关（与 FID 相反）。这意味着 TD 最初会降低金融稳定性，并在 TD 超过阈值水平后对其进行改善。竞争（如 LI，LI 的值越高意味着竞争减少）对 TD 与金融稳定性的关联产生负面影响。因此，本研究的结果支持竞争脆弱性前提。令人惊讶的是，LI 和 TD 的负显着交互项意味着高竞争和高 TD 或低竞争和低 TD，这有助于银行的财务稳定性。

原创性/价值

研究结果为银行业的长期披露和竞争政策提供了参考，同时考虑了银行的财务稳定性。因此，这些发现是新颖的，并且对关于该主题的现有知识具有巨大的价值。