The effects of cross-border banking and institutional quality on accounting information of banks in Africa

Amidu, Mohammed and Mohammed Sissy, Aisha and Haruna, Issahaku (2017): The effects of cross-border banking and institutional quality on accounting information of banks in Africa. Published in: International Journal of Economics and Accounting , Vol. 8, No. 3/4 (14 December 2017): pp. 240-274.

Abstract

This paper seeks to analyse the implications of cross-border banking and institutional quality for accounting information quality. We sample 330 banks across 29 African countries and employ system GMM estimator as a methodological approach to test for two related hypotheses. First, banks financial statements are prepared on the basis of international accounting standards as banks cross-border when national institutions are strengthened. We build on these results and employ various specifications of institutional quality; the second test suggests that the relative quality of accounting information among banks in Africa during the period, 2002–2013, is attributed to cross-border banking, larger market share and the level of transparency.

• Item Type: MPRA Paper
• Language: English
• Keywords: banks; cross-border banking; institutional quality; developing countries; Africa.
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements

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