Abstract: The study examined the impact of financial reporting and information disclosure on bank capital and banks liquidity level. Despite the regulatory provision for information disclosure in the Nigerian banking industry by the regulatory authorities and the enforcement of strict compliance by banks, the sector still encounters distress. The objective of the study is therefore to ascertain if bank compliance on financial reporting and regulatory information disclosure in the Nigerian banking industry have a significant impact on shareholders funds and the level of bank deposit. The study made use of the survey research design which involved the use of primary method of data collection. Respondents for the study were chosen from the shareholders and depositors of the selected banks. The data collected was analyzed through the use of chi-square. The findings revealed that bank compliance on financial reporting and information disclosure has a significant impact on bank capital and bank liquidity position. It is therefore recommended that an Early Warning System mechanism should be put in place by the regulatory authorities to identify banks that do not comply with the financial reporting and information disclosure guidelines, in order to ascertain when a bank is facing problem than coming up too late to declare a bank insolvent or distressed.
Keywords: Disclosure, Bank Liquidity, Bank Capital, Financial Reporting.
Title: The Impact of Financial Reporting and Information Disclosure on Bank Capital and Bank Liquidity Level
Author: Dr. James, S. O., Okoh, M.O., Ajayi, S.O.
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
