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Stress Test and Credible Information Disclosure

Arpit Kumar Parija

Review of Corporate Finance Studies2026https://doi.org/10.1093/rcfs/cfag001article
AJG 3ABDC A*
Weight
0.50

Abstract

We model credibility challenges financial regulators often face when disclosing bank stress test results. Since disclosures influence banks’ risk-taking and depositors’ withdrawal decisions, regulators may have incentives to misreport. We show that regulators can reveal results credibly through imprecise disclosures to both banks and depositors. The regulator reveals only the range or the interval in which the result lies. Crucially, our findings indicate that stress test results can be disclosed credibly without assuming that the regulator is committed to truthful disclosure.

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https://doi.org/https://doi.org/10.1093/rcfs/cfag001

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@article{arpit2026,
  title        = {{Stress Test and Credible Information Disclosure}},
  author       = {Arpit Kumar Parija},
  journal      = {Review of Corporate Finance Studies},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1093/rcfs/cfag001},
}

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Stress Test and Credible Information Disclosure

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.