Determinants of corporate voluntary disclosure in a transition economy

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Corporate voluntary disclosure becomes a burning issue in the literature of accounting throughout the last two decades. The study aims to explore the most crucial determinants that influence corporate voluntary disclosure in a transition economy. A cross-sectional study based on the pharmaceutical and chemical companies listed in the Dhaka Stock Exchange is conducted to reconnoiter the crucial determinants affecting the voluntary disclosure. Based on the agency theory, stakeholder theory, and previous literature, the determinants are selected. An unweighted disclosure index is used to measure the extent of voluntary disclosure; after that, a multivariate analysis is steered to reconnoiter the key determinants of voluntary disclosure. It is found that firm leverage and firm liquidity are the key determinants that significantly influence the corporate voluntary disclosure in a transition economy. In contrast, no significant positive association is found between voluntary disclosure and board size. In additon, it is also found that market category significantly influences voluntary disclosure with an inverse direction. This study has important implications for both the corporate people and the regulatory bodies of the transition economy. The study also helps various stakeholders of the transition economy – Bangladesh, in designing their strategies regarding the most significant determinants of voluntary disclosure.

Acknowledgment
We are very thankful to the Institute of Advanced Research (IAR), United International University, Bangladesh, to grant us the fund by mobilizing which we generate our required data for the study and complete this empirical study.

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    • Table 1. Operationalization of variables used in the study
    • Table 2. Descriptive statistics of the study
    • Table 3. Correlation matrix
    • Table 4. Regression coefficient
    • Table A1. Content analysis of corporate voluntary disclosure
    • Conceptualization
      Mofijul Hoq Masum, Ahmed Razman Abdul Latiff, Mohammad Noor Hisham Osman
    • Data curation
      Mofijul Hoq Masum
    • Formal Analysis
      Mofijul Hoq Masum
    • Funding acquisition
      Mofijul Hoq Masum
    • Investigation
      Mofijul Hoq Masum
    • Methodology
      Mofijul Hoq Masum, Ahmed Razman Abdul Latiff, Mohammad Noor Hisham Osman
    • Project administration
      Mofijul Hoq Masum
    • Resources
      Mofijul Hoq Masum
    • Software
      Mofijul Hoq Masum
    • Supervision
      Mofijul Hoq Masum, Ahmed Razman Abdul Latiff, Mohammad Noor Hisham Osman
    • Validation
      Mofijul Hoq Masum, Ahmed Razman Abdul Latiff, Mohammad Noor Hisham Osman
    • Visualization
      Mofijul Hoq Masum
    • Writing – original draft
      Mofijul Hoq Masum
    • Writing – review & editing
      Ahmed Razman Abdul Latiff, Mohammad Noor Hisham Osman