Bank Disclosure and Stock Price Synchronicity: Evidence from Dual-Banking System Countries

In stock markets, information plays a crucial role in determining trading dynamics and price discovery. the investment decisions, an investor may have incomplete regarding firm-specific factors because of asymmetry. Therefore, investors rely on market factors. Extensive work has been done synchronicity (SYNCH) from dual banking system viewpoint. present study examines association Stock Price Synchronicity with Bank’s Disclosure items Shariah Compliance using data 138 banks for 09 years (2011-2019) by taking countries. We consider 11 countries, i.e., Bahrain, Bangladesh, Kuwait, Lebanon, Malaysia, Pakistan, Qatar, Saudi Arabia, Turkey, UAE, Yemen, analysis. select different based these countries' systems exclude two countries (UAE & Yemen) due to availability issues. Data is analyzed specific statistical techniques like descriptive statistics, correlation, Fisher-type unit-root test, endogeneity generalized method moments (GMM) STATA. analysis, we found that bank disclosure significant positive relationship SYNCH. However, shariah compliance negative relation Moreover, control variables which include profitability, leverage The banks' size affects according market.
 Keywords: Synchronicity, Disclosure, Asymmetric Information, Banking Sector.
 JEL Classification: D82, G21