Models of Accounting Disclosure by Banking Institutions

Research output: Contribution to journalArticlepeer-review


In this monograph, I advocate and illustrate an emerging stream of accounting literature that deploys economic models to study issues of accounting disclosure by banking institutions. To motivate the focus on a specific industry (banking), I identify two banking specificities: first, banks are fragile to the risk of runs due to their economic roles in liquidity creation, and second, banks are heavily regulated due to a desire to protect uninformed and dispersed depositors. More importantly, I show that considering these banking specificities, accounting disclosure by banks can play a prominent role in influencing the stability and the efficiency of the banking system. I present workhorse models that can be adapted as building blocks to capture the roles of accounting disclosure in the banking industry. I also draw on recent studies to illustrate specific accounting applications of the workhorse models and discuss their potential to generate implications that inform policy debates and empirical tests.

Original languageEnglish (US)
Pages (from-to)173-300
Number of pages128
JournalFoundations and Trends in Accounting
Issue number1
StatePublished - 2023

Bibliographical note

Publisher Copyright:
© 2023 G. Zhang.


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