Information Transparency: The Important Metric for Vietnam's Banking Performance

Abstract

This research is conducted to develop and expand the indicators measuring information transparency of banks through the synthesis of various metrics. On the other hand, based on a sample of 10 Vietnamese commercial banks of a variety of sizes as representatives for spanning the period 2007-2018, we also experimentally examine the effects of transparency on profitability of banks. Our findings have shown that information transparency has been playing an essential role in impacting on banks’ business performance. We believe that this study will provide a useful tool for investors, shareholders, customers as well as regulators in measuring and evaluating the transparency of banks and emphasizing the necessity of a request for improving information transparency.