Abstract
Firms located in mandatory disclosure regimes face a choice of disclosing only what is mandated or voluntarily disclose additional information. In this paper, we investigate why companies choose to disclose information voluntarily, over and above what is mandated by regulatory authorities and whether this dual approach to disclosure actually translates to better disclosure quality. Our findings from analysing data from Bombay Stock Exchange’s Top 100 firms suggest that firms pursue a portfolio approach with respect to voluntary disclosure. That is, firms who voluntarily commit to multination agreements on sustainable business practices like the UNGC are also more likely to pursue local voluntary sustainable standards above legal requirements. Moreover, we also find that additional voluntary sustainability reporting according to GRI guidelines within a mandatory disclosure environment enhances the overall quality of disclosure. Further examination of firm-level contingencies of this relationship indicates that a firm’s level of product diversification positively moderates the relationship between additional voluntary sustainability reporting and the firm’s overall quality of disclosure.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.