Effect Of Voluntary Disclosure Research Articles

Effects of Voluntary Disclosure on Investments Decisions:

Effects of Voluntary Disclosure on Investments Decisions:

The effect of voluntary disclosure on financial performance: Empirical study on manufacturing industry in Indonesia.

The manufacturing sector's adherence to managing natural resources from the environment still needs to be improved. This study's objective is to determine how Corporate Social Responsibility (CSR) influences the financial performance of manufacturing firms featured in the LQ45 Index, as measured by Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). All manufacturing companies that are included in the LQ45 Index's population for this study were sampled using the purposive sampling method. This study uses secondary data from the CSRI based on the Global Reporting Initiative (GRI) G4 standard for 2018-2020 and the annual reports of companies in the manufacturing industry sector listed on the LQ45 Index. Moreover, applying a quantitative methodology, descriptive statistical methods, conventional assumption tests, and simple linear regression analysis were applied in this study's data analysis. The results of the study proved that CSR has a significant effect on ROA but does not affect the ROE and NPM of LQ45 manufacturing companies. In accordance with the signaling theory, CSR disclosure sends a favourable message to outsiders, which stakeholders and shareholders will respond to through changes in business earnings. CSR implementation can establish a positive image for the company, but it can also improve the company's image in both the commodity and capital markets. Investors will be more attracted to a company with a positive corporate image since a positive corporate image increases consumer loyalty. As consumer loyalty rises, the company's sales will likewise rise, and its profitability will increase as a result. This paper opens a new research path in corporate social responsibility and financial performance for possible links among variables; a matter that has not been previously explored in Indonesia Manufacturing Public Companies.

Measuring the Level of Voluntary Disclosure in Commercial Banks and its Effect on Improving Financial Performance: an Applied Study on Number of Commercial Banks in the Iraqi Stock Exchange

Purpose: The aim of this study is to know the impact of voluntary disclosure on the financial performance of Iraqi commercial banks. It is able to attract the largest number of investors, as the information and data contained in the financial reports no longer truly reflect its financial position. Theoretical framework: Voluntary disclosure plays a pivotal role in reducing the cost of financial analysts obtaining the necessary information to build their predictions about profits and cash flows achieved in the future, and thus will contribute to rationalizing investors' decisions and thus improving the efficiency of financial markets. Design/methodology/methodology: The study population consists of (15) commercial banks listed in the Iraqi Stock Exchange, and a ten-year time series has been selected and the period extends from (2010-2019), government and Islamic banks have been excluded due to the difference In the privacy of applicable regulations. Find: The results of the study showed a positive and moral impact of voluntary disclosure on financial performance, while the effect of voluntary disclosure on the rate of return on assets and the rate of return on equity was also positive, while the effect of voluntary disclosure on earnings per share was negative, and in the end, the researcher recommended a set of recommendations Perhaps the most important of them is the need for intervention by bodies, unions and the government in order to put in place a set of instructions, controls, laws and legislations necessary to regulate the process of voluntary disclosure, while clarifying the advantages that can accrue to banks from this disclosure. Research, practical and social implications: This study has dealt with the issue of voluntary disclosure in the academic and administrative fields, where the researcher hopes that the Iraqi banking sector and stakeholders will benefit from this study as it establishes, theoretically and practically, the logical connection of the relationship between voluntary disclosure and financial performance. Originality/value: The study's originality value by measuring the impact of voluntary disclosure on the level of financial performance for the first time in Iraqi commercial banks for the period from (2010-2019) except for governmental and Islamic banks due to the difference in the specificity of the applicable regulations.

The Effect of Voluntary Disclosure on the Market Value of the Shares of Companies Listed in the Iraq Stock Exchange

This research focused on the clarification and impact of voluntary disclosure on the market price of the shares of economic units in the Iraq Stock Exchange. As well as determining the market price of the share and the factors affecting it and analyzing the role played by voluntary disclosure in the stability of themarket value of shares. To achieve the research objectives, (50) questionnaires were distributed, The standard deviation and the arithmetic mean were extracted for each axis of the questionnaire to achieve the objectives and hypothesis of the research. Through this study, several conclusions were reached, The most important of which is that voluntary disclosure affects the market price of the share and thus leads to an increase in the market share of companies. Furthermore, voluntary disclosure increases the confidence and degree of uncertainty of decision-makers from investors and stakeholders. Moreover, the market price of a share is not only affected by the type of partial factors involved to the company's internal environment. However, other factors affect it. Several recommendations were reached, representing That disclosure is voluntary should receive attention appropriately from the Iraqi The economic units present in the stock market in IraqThe management of the companies must prepare the financial statements and the clarifications attached to them honestly Which reflects the result of the balance sheet of the economic unit.

제조원가명세서 공시와 감사보고 시차

[연구목적] 본 연구는 제조원가명세서 공시와 감사보고 시차의 관계를 실증적으로 분석하고 이들의 관계에서 외국인지분율에 따라 차이가 있는지를 검증하고자 한다. [연구방법] 본 연구의 표본은 2011년부터 2018년까지 유가증권시장에 상장된 3,329개의 기업－연도를 대상으로 하였다. 실증분석을 위해 제조원가명세서 공시 여부는 김미옥 외(2016)의 방법론을 적용하였다. 종속변수인 감사보고 시차는 회계연도 종료일부터 감사보고서 작성일자까지의 일수에 자연로그를 취한 값과 원 변수로 측정하였다. [연구결과] 분석결과는 다음과 같다. 첫째, 제조원가명세서 공시여부와 감사보고 시차는 양(＋)의 방향으로 유의하였다. 이는 자발적 공시로 인한 정보비대칭 감소 효과보다 재무제표에 자발적 공시 내용이 포함됨으로써 고유위험 증가 효과가 상대적으로 더 크기에, 감사보고 시차가 증가한 것으로 유추된다. 둘째, 외국인지분율에 따른 제조원가명세서 공시여부와 감사보고 시차의 관계는, 외국인지분율이 중위수보다 큰 집단에서만 유의한 양(＋)의 방향성을 보였다. 외국인투자자는 투자기업에 보다 신뢰성 높은 회계정보를 요구하기에 해당 기업은 보다 많은 감사노력을 기울이고 이는 감사보고 시차 증가로 나타남을 유추해 볼 수 있다. [정책적 시사점] 본 연구는 제조원가명세서의 자발적 공시가 회계감사 측면에서 감사보고 시차에 어떠한 영향을 미치는지 직접적으로 살펴보았다는 데 의의가 있다. 제조원가명세서의 자발적 공시는 기업의 고유위험을 증대시켜 감사수행 절차의 결정요인으로 작동하고 있었으며, 감사노력이 증가한다는 결과를 제시함으로써 감독기관과 감사인, 감사대상 기업 등에게 시사점을 제공할 것으로 판단된다.

The Effect of Voluntary Disclosure of the Schedule of Manufacturing Cost on Book-Tax Differences

The Effect of Voluntary Disclosure of the Schedule of Manufacturing Cost on Book-Tax Differences

The Effect of Voluntary Disclosure on Investment Inefficiency

ABSTRACTWe introduce real decisions (a project choice decision, an investment scale decision, and an information acquisition decision) to the Dye (1985) voluntary disclosure framework and examine how the prospect of voluntary disclosure affects managers' real decisions. Riskier projects lead to more volatile environment and hence entail higher efficiency loss at the subsequent investment scale decision stage if managers are uninformed. If managers are informed, they can withhold bad information, and the value of this option is higher for riskier projects. We show that the voluntary nature of managers' disclosure may lead to two types of inefficiencies: (1) managers may choose riskier projects, which generate lower expected cash flow due to the higher efficiency loss at the subsequent decision stage, and (2) managers may over-invest in information acquisition, because informed managers with bad information have the option to pool with uninformed managers and benefit from being overpriced.

How do industry peers influence individual firms’ voluntary disclosure strategies?

This paper investigates how industry peer firms influence the voluntary disclosure strategies of individual firms. Our 2SLS regressions on an empirical sample of management earnings forecasts show that the disclosure strategies of individual firms are significantly influenced by their peer firms’ disclosure behaviors. Specifically, the increased disclosure frequency and disclosure horizon of their industry peers encourage individual firms to increase their disclosure frequency and disclosure horizon. Moreover, firms with S&P credit ratings, higher profitability, larger size, and/or a higher market-to-book ratio tend to be more sensitive to their peer firms’ voluntary disclosure frequency, and react more strongly to peer firms that are of dissimilar size or profitability. Finally, we find that the leader–follower relation does not influence the effects of peer firms’ disclosure strategies. Additional tests suggest that signaling theory and litigation risk provide stronger explanations of why firms mimic their peers than herding theory and free rider theory. This paper contributes to the accounting literature by providing new evidence on the effects of voluntary disclosure. Our findings are also of relevance to industry practitioners, and they shed light on the recently proposed voluntary disclosure regulations.

The Effect of Voluntary Disclosure on Investment Inefficiency

Firms' ability to voluntarily disclose or conceal information may affect their investment decisions. In particular, voluntary disclosure in the presence of uncertainty about information endowment (a la Dye 1985) induces firms to choose the riskier among projects with equal expected returns (Ben-Porath et al. 2017). We study multi-stage investment decisions in which the firm's manager first chooses between projects with different riskiness and later may privately learn additional information about the technology of the chosen project. If informed, the firm can voluntarily disclose the new information to the market. Finally, based on the available information the manager determines the scale of the investment. If uninformed, the manager cannot tailor the investment scale to the realized technology. The resulting decrease in expected cash flow is higher for a riskier project. We study how a manager, who cares about both the firm's stock price (myopic incentive) and the long-term cash flow, optimally chooses the project and the voluntary disclosure decision, and how the investment efficiency varies with managerial myopia and information environment. As expected, managerial myopia always (weakly) decreases overall investment efficiency. However, information environment (the probability of obtaining information) may have a non-monotonic effect on overall investment efficiency. We extend the base model to allow for costly information acquisition and show that main results still hold.

Determinan Biaya Modal: Studi Pada Perusahaan Non-Keuangan

The cost of equity capital represents the number of expenses that must incur or must be paid to obtain capital either from debt, stock preference, ordinary shares, or retained earnings to finance corporate investment. This study aimed to examine the effect of voluntary disclosure, leverage and the market value of equity on the cost of equity capital. Samples in this research were 314 companies in the non-financial sector and were selected using purposive sampling method. The measurement used for the independent variables are voluntary disclosure, leverage, and market value of equity and dependent variable used cost of equity. Measures for control variable in this research is firm size. The results showed that only voluntary disclosure variables that significantly affect the value of equity capital, while the other two variables are not significant. DOI: 10.15408/ess.v8i2.7597

STUDI EMPIRIS TERKAIT DENGAN PENGUNGKAPAN SUKARELA, KUALITAS AUDIT DAN ASIMETRI INFORMASI TERHADAP STOCK RETURN PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR PADA BURSA EFEK INDONESIA

This study used data of manufacturing companies listed on the Jakarta Stock Exchange (JSX) as unit of analysis. The purpose of this study is to find out the influence of voluntary disclosures and audit quality on information asymmetry. This study also aims to determine the effect of voluntary disclosure, audit quality and information asymmetry on stock return. In addition, this study aims to find out the ability of information asymmetry to mediate the effect of voluntary disclosure and audit quality on information asymmetry.This research used verificative-descriptive method with quantitative approach. The analytical method used in statistical data processing was path analysis. There are 132 manufacturing companies listed on JSX became the research samples of this study.The testing results shows that there are significant impact of voluntary disclosure and audit quality on information asymmetry. The testing results also show that there are significant impact of voluntary disclosure and information asymmetry on stock return, while the audit quality has no significant impact on stock return. At the same time, information asymmetry is significant to be the mediating variable on the impact of voluntary disclosure and audit quality towards stock return. Voluntary disclosure, audit quality and information asymmetry can be the determinant variables on Stock Return of manufacturing companies, listed on JSX.

Who Benefits from Voluntary Disclosure? Evidence from Italian Market Microstructure Data

Using proprietary market microstructure data of Milan Stock Exchange and strategic plan presentations of Italian firms as disclosure events we explore the distributional effects of voluntary disclosure. We document systematic trading patterns around our disclosure events that on average generate two-month positive abnormal returns of 5.9% for investors trading large shares, while investors trading small shares experience negative abnormal returns of 5.3%. This economically large wealth distribution effect is triggered by large investors increasing their stakes in disclosing firms prior to news arrival irrespective of the nature of the news. Around news arrival, they sell their inventory to small investors in case of bad news. Our findings are particularly pronounced for smaller firms with event-related media coverage, and are consistent with sophisticated investors systematically exploiting attention-based trading behavior of unsophisticated investors triggered by the public dissemination of voluntary disclosure information in the Italian market.

The effect of voluntary disclosure on stock liquidity: New evidence from index funds

This study tests whether voluntary disclosure affects stock liquidity. I argue that index funds fit the profile of nonstrategic traders who, according to theory, are unambiguously more likely than managers and strategic investors to prefer high stock liquidity and thus high disclosure. This suggests that I can use index funds' disclosure preferences to construct an empirical model of voluntary disclosure that abstracts away from managers' strategic disclosure motives. Accordingly, I use an index-fund setting to construct a recursive structural equation model of voluntary disclosure, index fund ownership, and liquidity. I find that when a firm joins the S&P 500 index, voluntary disclosure increases with the level of ownership assumed by index funds, and this increase in disclosure is associated with increased stock liquidity. These results imply that voluntary disclosure increases stock liquidity.

The Effect of Voluntary Disclosure on Earnings Management: Structural Equation Modeling Approach

The Effect of Voluntary Disclosure on Earnings Management: Structural Equation Modeling Approach

Bentham's Panopticon and Real Effects of Voluntary Disclosure

This paper examines voluntary disclosure of nonproprietary information where the manager is uncertain about the market’s reaction to disclosure. In particular, we consider situations where a manager is uncertain about whether her decision to withhold private information is either directly observed or only considered possible by investors. We show that adding the possibility that investors identify deliberate non-disclosure increases voluntary disclosures by managers – a finding which is reminiscent of Bentham’s Panopticon. We show that voluntary disclosure increases in the probability that managers assign to the case of being identified as non-disclosers and that this result is the outcome of two opposing effects. Finally, we show that when the manager uses her private information for a publicly observable production decision she has ex ante incentives to make her non-disclosure decision identifiable. This counterintuitive result occurs because informed investors serve as a commitment device for managers to produce efficiently ex post.

PENGARUH VOLUNTARY DISCLOSURE OF FINANCIAL INFORMATION DAN CSR DISCLOSURE TERHADAP EARNING RESPONSE COEFFICIENT

The purpose of this study is to determine the effect of voluntary disclosure of financial information and CSR disclosure to earning response coefficient on manufacturing companies listed in Indonesian Stock Exchange in 2010-2012. This study use disclosure index proposed by Setiany (2013) to measure the scope of the voluntary disclosure of financial information. As for the CSR Index, adapted from Sembiring (2005), which measures the scope of CSR disclosure. Earnings response coefficient is measured by cumulative abnormal return regression (CAR) with unexpected earnings (EU) ± 5 (five) days in the period from the date of issuance window annual report. This study uses multiple regression analysis. Samples of this research are 75 companies listed on Indonesia Stock Exchange in 2010-2012. The results indicated that voluntary disclosure of financial information have no significant effect on earnings response coefficient, while CSR disclosure has a positive effect on earnings response coefficients

10.5937/sjm9-5784 = The use of voluntary disclosure in determining the quality of financial statements: Evidence from the Nigeria listed companies

The purpose of this study was to establish the use of voluntary disclosure in determining the quality of financial statements among the listed companies in Nigeria. Specifically the study investigated on the effects of voluntary disclosure on investor decision and performance of listed companies in Nigeria. This study adopted an exploratory design which is described as a method of collecting information by interviewing or administering a questionnaire to a sample of individuals. The instrument of data collection for this research was a questionnaire as the study used primary data. The study targeted all the 258 listed companies in Nigeria. The study population used in this research comprised of preparers (accountants), external auditors and users of accounting information (financial analysts, stockbrokers, bankers, regulators and educators). The sample of this study was 140 whereby twenty questionnaires were distributed in every category of the respondents. Descriptive statistics such as mode, median, mean, standard deviation, etc were used to perform data analysis. These measures were calculated using Statistical Package for the Social Sciences (SPSS 20) software. SPSS tool (Statistical Package for the Social Sciences) was used to organize and analyze data. The study findings indicated that there was increased performance and investor decision making was easy to make due to voluntary disclosure. The results indicate that voluntary disclosure was satisfactory in explaining investor decision making and performance of listed companies. It was possible to conclude from the study findings that voluntary disclosure was statistically significant in explaining investor's decision and performance of listed companies in Nigeria. It was also possible to conclude that there was high level of voluntary disclosure in Nigeria listed firms which led to high performance of the firms and made it easy for investors to make decision whether to invest in the companies or not.

The Effect of Voluntary Disclosure of the Schedule of Manufacturing Cost on Cost of Debt

The Effect of Voluntary Disclosure of the Schedule of Manufacturing Cost on Cost of Debt

The Effect of Voluntary Disclosure on Firm Risk and Firm Value: Evidence from Management Earnings Forecasts

This study investigates whether the voluntary disclosure of management earnings forecasts influences investors’ assessment of firm risk and firm value. We find a significant negative relationship between the issuance of management earnings forecasts and a variety of measures of firm risk (idiosyncratic risk, stock return volatility, beta, and bid-ask spreads), with more frequent, more precise and more accurate earnings forecasts further decreasing firm risk. Our results therefore suggest that information quality is an important determinant of both diversifiable risk and nondiversifiable systematic risk. We also demonstrate that management earnings forecasts are positively associated with firm value as captured by Tobin’s Q while more frequent, precise and accurate forecasts further enhance valuation premiums. Finally, we find that management earnings forecasts impact firm value not only through a reduction in firm risk, but also through changing investors' perceptions about future cash flows. Our results are robust to various sensitivity checks. Overall, releasing high-quality management earnings forecasts is associated with important capital market benefits.

The moderating effect of voluntary disclosure on the relation between earnings quality and information asymmetry: some Canadian evidence

This study investigates how web-based voluntary disclosure affects the relation between earnings quality and information asymmetry, considering governance attributes. Our results show that both earnings quality and web-based disclosure are associated with reduced information asymmetry. In addition, web-based disclosure has a moderating effect on the relation between earnings quality and information asymmetry, irrespective of earnings quality. This is consistent with the argument that stock market participants assess the quality of financial reporting taking into account a firm’s overall disclosure strategy. Finally, corporate governance is found to underlie both disclosure and earnings quality.