Corporate Financial Disclosures in Banking Companies: Public Vs Private

Abstract

Corporate financial disclosure is an obligation of company to release its performance for the particular years. It not only improves the confidence of its users but also motivates to carry on with the activities of the company. The study scrutinizes the compliance of such disclosure in Indian banking companies. It is an empirical analysis of the degree of mandatory disclosure in financial reports as per ICAI. The sample consists of30 banking companies selected on the basis of market capitalization. The study revealed that there are high-disclosure practices among selected companies which compliance to mandatory accounting standards. Another objective is to know the disclosure practices and some variables impacting on profit efficiency of the banking industries. The variables that are selected for the study are deposits of customers, advances, disclosure score, interest income, and number of offices which are considered as influencing variables of net profit. Thus, relatively high and moderate correlations wer~ observed among different variables and disclosure score.