Banking disclosure and banking crises in Africa

Abstract

The paper aims to investigate the impact of board gender diversity in explaining the relationship between bank disclosure and the predicted probability of banking crises in Africa. The study employs robust panel estimates based on an aggregate dataset of banks in 42 African countries over the 2006–2018 periods. From the study, board gender diversity (more women on boards and the presence of women on boards) has a positive impact on information disclosure of banks. We find that board gender diversity and bank disclosure have the possibility of reducing a banking crisis. We observe that board gender diversity enhances the reductive effect of bank disclosure on a predicted probability of a banking crisis. The implication is that women on boards provide prudent decisions on financial information disclosure that significantly reduce the possibility of a banking crises in order to ensure stable banking systems.