This paper examines how for parent banks headquartered in the US and EU countries bank risk during the financial crisis of 2008-2009 was related to the size of banks’ internal capital market (ICM) and other bank characteristics in the pre-crisis period of 2002-2007. The results suggest that...

We employ a self-developed dictionary designed to analyze bank financial statements to study the link between disclosure and bank risk in a sample of 225 European banks over the period 2011-2017. Disclosure is associated with reduced default risk for all but the most aggressive risk-taking...