Opacity and risk-taking: Evidence from Norway

• Published in: Journal of banking & finance Vol. 134; p. 106010
• Main Authors: Cao, Jin, Juelsrud, Ragnar E.
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.01.2022
• Subjects: Available-for-sale securities; Off-balance sheet items; Opacity; Risk-taking; Transparency; Transparency; G21; G23; Opacity; Available-for-sale securities; Off-balance sheet items; G28; Risk-taking

This paper investigates how balance sheet opacity affects banks’ risk-taking behavior. We measure bank balance sheet opacity according to two metrics: the ratio of available-for-sale (AFS) securities and the ratio of off-balance sheet items. We show that balance sheet opacity is positively correlate...