Dynamics of firm-level financial inclusion: empirical evidence from an emerging economy

Abstract

This article examines the financial inclusion disclosure practices of Bangladeshi banks from 2008 to 2013. The authors develop a financial inclusion index from the banking firm perspective to measure the level of financial inclusion disclosures in the annual reports and explore the potential determinants of such disclosures. The results demonstrate that the level of financial inclusion disclosures improved significantly after the central bank of Bangladesh released directive relating to financial inclusion. The results also indicate that the level of financial inclusion is positively influenced by banking firm size, growth opportunities, institutional investors, audit committee size and religion-based operations of the bank, whereas the percentage of female directors and firm age are negatively associated with the level of financial inclusion disclosures. The findings of this study should be of interest to managers, regulators and policy makers in countries that share similar financial systems.