The Impact of Operating Segment Disclosure on Stock Performance: Does Firm Size Matter?

Abstract

This study investigates the impact of operating segment disclosure on stock performance in the banking sector. and examines the moderating role of firm size in this relationship. The research question addresses whether enhanced segment disclosure positively influences stock performance and how firm size affects this relationship. Utilizing a purposive sampling method, this study analyzes data from 195 banks based on annual reports published from 2019 to 2023. The findings reveal that operating segment disclosure positively influences stock performance, with firm size significantly enhancing this effect. These results suggest that greater transparency in segment reporting can improve investor confidence and market valuation. The study contributes to financial literature by highlighting the importance of operating segment disclosure and firm size in investment decision-making. It offers practical implications for banking management and investors seeking to optimize their strategies in the capital market.