Abstract:
The purpose of this study is mainly to investigate the association between firm-specific
characteristics and voluntary disclosure level in annual reports. Firm-specific factors
identified for this study are profitability, firm’s age, firm size, auditor size, leverage, and
ownership structure. Voluntary disclosure is measured by using the voluntary disclosure
index while firm-specific variables are measured according to numerous proxies utilised
by previous studies. Hence, a multiple regression analysis has been employed to identify
the relationship. The findings show that the variables which have a positive influence
on voluntary disclosure are profitability, firm size, and governmental ownership, while
family ownership is found to be negatively associated with voluntary disclosure. The
findings have could be helpful to investors, management, regulators and legislators in
their attempts to comprehend the important factors influencing voluntary disclosure and
to reduce agency problems.