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Working paper

Is it Worth Being Transparent? Evidence from the Russian Banking System

Andrievskaya I. K., Raschupkin M.
Information disclosure is considered as an important prerequisite for the efficient functioning of a financial system. Costs and benefits of information disclosure in the banking system have been extensively theoretically and empirically investigated. However, the effect of voluntary transparency on bank market power and market share is still empirically unexplored. Our paper fills this gap in the literature, examining two hundred of the largest Russian banks in the period 2004-2013. The findings confirm that voluntary transparency – absolute and relative – affects a bank’s market power and market shares. Moreover, this relation depends on the bank’s asset quality.