.png){kind=icon}
.png){kind=icon}
Return
Financial market discipline and new business formation
.png){kind=icon}
OA
AI
M
P
Y
DOI：10.1007/s11187-026-01262-z.png)
.png){kind=icon}
Original request for help.png){kind=icon}
Share.png){kind=icon}
Save
Abstract
En 中文
This study examines the effect of public disclosure of financial misconduct in the retail banking industry on the real economy. We propose that strengthened public disclosure of misconduct imposes disciplinary pressure which improves services and intermediation in the retail financial sector and that it ultimately benefits the local economy. Using a large dataset of public complaints about financial misconduct, we find a positive relationship between the intensity of public disclosure and new business formation in the local community. We also find such a market discipline avenue complements the role of social trust in improving the local entrepreneurial ecosystem. Publicly exposing bank misconduct does more than disclosure — it can actually help local economies grow by encouraging new business formation. This study examines public complaints about financial misconduct in retail banking. The results show that stronger public disclosure is linked to more new businesses in the local community. The effect iseven stronger in places with higher social trust. The main implication is for policy and practice: stronger transparency and disclosure rules can improve bank behavior and create a healthier environment for local business creation.
Keywords:
Fraud
Market discipline
Entrepreneurship
Journal
IF:
4.8
Papers:
3.5K
Citations:
1.5W
Organization
Cited Papers