Firm Characteristics and the Extend of Voluntary Disclosure: The Case of Indian Tourist Companies
Keywords:
Firm Characteristics, Annual reports, Voluntary DisclosureAbstract
In a society depending on real time information, corporate disclosure is crucial for the capital market efficiency. A healthy disclosure practice ensures the transparency in the information availability to the investors which results in increasing firm credibility in the market. The purpose of this study is to investigate the association between the voluntary disclosure level in annual reports and firm characteristics by taking a sample of 35 tourist companies listed on the Bombay Stock Exchange and National Stock Exchange for the period 31 March 2017 to 31 March 2018. Size of the firm, leverage, profitability, number of non- executive directors and firm’s age are the indicators which has been used to represent the firm’s characteristics. A multiple regression has been performed after developing a disclosure checklist consisting of 65 voluntary items of information. Our study showed there is no significant association between firm size and the voluntary disclosure level in annual reports. However leverage number of non-executive directors and firm’s age has shown a significant positive association with voluntary disclosure level.
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