Abstract
This paper contributes to the lack of longitudinal studies concerning online information access to corporate governance (CG) practices in the banking sector of Latin American countries. In particular, this study aims to analyze the factors that influence information transparency, both mandatory and voluntary, related to CG practices of banks that operate in Paraguay via their websites from 2016 to 2019. Findings indicate the need to improve the level of information available on websites, with disclosure of voluntary information on CG practices being more prevalent than the disclosure of mandatory information. Likewise, banks that operate in Paraguay have made scant “progress” regarding online access to their governance information over the years analyzed. Moreover, the factors “Bank size” and “listed status” positively influence the information transparency regarding CG practices of Paraguayan banks. In contrast, “leverage,” “liquidity,” “size of the audit firm,” and “credit risk rating” are factors that have a negative relation with the extent of CG disclosure.
Highlights
Information access or transparency on Corporate Governance (CG) practices is still a challenging issue for banks operating in Latin America (LA) since this region is characterized by opaque markets with high levels of information asymmetries, weak legal environments, and systematic corruption [1]
More than half of the information regarding CG practices was disclosed by the banks that operate in Paraguay
This “moderate” level of CG disclosure is in line with similar prior longitudinal research focused on access to information in the Online information on corporate governance practices and banking sector context of the banking sector in Arabian Gulf countries [38, 39] and Bangladesh [40]
Summary
Information access or transparency on Corporate Governance (CG) practices is still a challenging issue for banks operating in Latin America (LA) since this region is characterized by opaque markets with high levels of information asymmetries, weak legal environments, and systematic corruption [1]. The existing studies mainly focus on non-financial companies and the disclosure of voluntary information through static analyses. These studies are developed in the context of Venezuela [4], Brazil [5,6,7], and Argentina [8]. An exception to this line of research is the work of Briano and Saavedra [9], who address several of the aforementioned LA countries along with Chile and Mexico. Research on the CG transparency practices of LA banks is minimal [3]
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