Abstract
The study presented in the paper contributes to covering the gap in the area of sufficient information disclosure that also increases the interests of relevant stakeholders in contributing to depository market discipline and in being relevant to their interest within Pillar 3 framework. This paper is focused on an analysis of website data dedicated to Pillar 3 disclosures of commercial banks and on studying the behaviour of stakeholders in relation to the timing of serious market turbulence. The examined data consists of log files that were pre-processed using web mining techniques and from which were extracted frequent itemsets by quarters and evaluated in terms of quantity. The authors have proposed a methodology to evaluate frequent itemsets of web parts over a dedicated time period. The results show that stakeholders’ interest in disclosures is lower after turbulent times in 2009, higher in the first quarter, also higher together with annual reports (lower for Pillar 3 solo information). The paper’s results suggest that further changes in commercial banks´ information disclosure are inevitable in order to achieve an effective market discipline mechanism and meaningful disclosures according to the regulator´s expectations.
Highlights
The globalization, conglomeration, innovation and development of capital markets have significantly accelerated
This mechanism is operationalized through Pillar 3 information disclosure
The last revision to the Pillar 3 standard has been made in 2015. This process continued with the second phase of the Pillar 3 review through the Consultative document issued in March 2016, which was opened for comments until June 2016
Summary
The globalization, conglomeration, innovation and development of capital markets have significantly accelerated. The ability of supervisors to adequately monitor and regulate financial institutions has been limited and remove the market discipline has acquired a significantly greater role in remove the financial markets’ regulatory matters. Remove the Market discipline in its broader terms can be understood as a mechanism. Journal of Business Economics and Management, 2017, 18(5): 954–973 via which market participants monitor, assesses and discipline risk taking by financial institutions. Reactions to that are focusing on Basel regulatory documents and are related to the EU legal capital requirements directives. Basel III documents have been significantly changed and extended in all aspects, including the Pillar 3 – Disclosure and Market Discipline
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