Does Corporate Governance Influence Voluntary Disclosure? Evidence from India

Rupjyoti Saha () and Kailash Chandra Kabra ()

Indonesian Journal of Sustainability Accounting and Management, 2019, vol. 3, issue 2, 203-214

Abstract: The purpose of this study is to examine the influence of different corporate governance (CG) attributes on voluntary disclosures (VD) made by 100 companies listed on the Bombay Stock Exchange (BSE) in their annual reports. To this end, the paper uses appropriate panel data regression technique, whereby the results indicate that three CG attributes—board independence, board gender diversity, and its risk management committee—have significant influence on VD. In particular, board independence is found to have weak negative influence on VD while its gender diversity and risk management committee indicate strong positive influence on VD. The other CG attributes, specifically the board size, role duality, ownership concentration, audit committee independence, and nomination and remuneration committees, do not reveal any significant influence on VD. Overall, the finding suggests that one of the conventional attributes of CG, i.e. board independence, acts with VD as an alternate control mechanism to reduce agency costs and protect investor interests. Meanwhile, VD coexists with some of the latest CG attributes, including board gender diversity and its risk management committee, to monitor managers. The results of this paper should be relevant to regulators, practitioners, and other market participants in the Indian context, as well as other emerging markets with similar institutional settings.

Keywords: corporate governance attributes; India; voluntary disclosure index. (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://asianonlinejournals.com/index.php/ijsam/article/view/7229/3249 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aoj:ijsaam:v:3:y:2019:i:2:p:203-214:id:7229

Access Statistics for this article

More articles in Indonesian Journal of Sustainability Accounting and Management from Asian Online Journal Publishing Group
Bibliographic data for series maintained by Sara Lim ().