Corporate governance and voluntary disclosure: evidence from India

What is it about?

The study reveals a significant negative influence of BI on VD while GD and RMC exhibit a significant positive influence on the same. The remaining CG mechanisms such as BS, RD, OC, ACI, and NRC appear to have no significant influence on VD. Analysis into the relationship between CG mechanisms and different types of VD reveals that BI, in particular, has a strong negative influence on corporate strategic disclosure (CSD) and forward-looking disclosure (FWLD) while GD and RMC both exhibit a significant positive influence on CSD, FWLD, CG disclosure and financial and capital market disclosure. Notably, none of the CG mechanisms under consideration influence human and intellectual capital disclosure.

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Why is it important?

The study offers some important theoretical and practical connotations for regulators and practitioners operating in India and other emerging economies having similar institutional settings. The study is the first of its kind in India that examines the influence of various CG mechanisms on different types of VD, thereby contributing novel findings in an emerging economy.