Impact of Voluntary Disclosure on Valuation of Firms: Evidence from Indian Companies
- Title
- Impact of Voluntary Disclosure on Valuation of Firms: Evidence from Indian Companies
- Creator
- Charumathi B.; Ramesh L.
- Description
- This article investigates the effect of voluntary corporate disclosures on the firm value from the market value perspective. Financial reporting includes disclosures as prescribed by regulators, but few companies go beyond mandatory requirements and provide additional information voluntarily. This study empirically tests the extent of such voluntary disclosures using Corporate Voluntary Disclosure Index containing 81 items of both financial and non-financial information and panel data regression to test the hypotheses. The sample for this study is the non-financial companies in the BSE 100 Index and the period is five financial years from 20102011 to 20142015. This study finds a positive association between voluntary disclosures and firm value as measured by Tobins Q. Especially the market gives a higher valuation for companies disclosing optional information on social and environmental, corporate governance and financial information. This finding has a significant implication for emerging economies like India and it supports various disclosure theories such as agency, stakeholders and positive accounting theories. 2020 Management Development Institute.
- Source
- Vision, Vol-24, No. 2, pp. 194-203.
- Date
- 2020-01-01
- Publisher
- Sage Publications India Pvt. Ltd
- Subject
- Financial Reporting; Firm Value; Panel Data Regression; Tobins Q Ratio; Voluntary Disclosures
- Coverage
- Charumathi B., Department of Management Studies, School of Management, Pondicherry University, Puducherry, India; Ramesh L., Institute of Management, CHRIST (Deemed to be University), Bangalore, India
- Rights
- Restricted Access
- Relation
- ISSN: 9722629
- Format
- Online
- Language
- English
- Type
- Article
Collection
Citation
Charumathi B.; Ramesh L., “Impact of Voluntary Disclosure on Valuation of Firms: Evidence from Indian Companies,” CHRIST (Deemed To Be University) Institutional Repository, accessed March 11, 2025, https://archives.christuniversity.in/items/show/16270.