The study examines how cybersecurity disclosures (CYD) affect the credit risk of Ghanaian universal banks (GUB). It also examines how bank size, listing status and ownership status influence the relationship between CYD and credit risk.
This study used data from 20 Universal banks spanning 2019–2023. Its findings were validated using ordinary least squares regression with robust standard errors and other robust checks. CYD is based on content analysis, with a frequency count of 21 keywords related to cybersecurity issues. Bank Credit risk is measured using the non-performing loans ratio (NPL).
The study finds that CYD lowers the NPL in Ghanaian universal banks. However, CYD has no significant effect on the NPL of smaller and domestically owned banks, but it decreases the NPL of large, foreign, listed and non-listed Ghanaian universal banks.
The study provides the first empirical evidence that CYD helps GUB reduce credit risk exposure and shows how bank size, listing and ownership status influence this relationship.
