Buradasınız

Anasayfa » Content

Association between firm characteristics and corporate voluntary disclosure: Evidence from Turkish listed companies

Journal Name:

  • Intangible Capital

Publication Year:

  • 2013

Keywords (Original Language):

Author NameUniversity of AuthorFaculty of Author
Bookmark/Search this post with
Abstract (Original Language): 
Purpose: This paper empirically investigates the factors that impact voluntary information disclosure level of Turkish manufacturing companies listed in the Borsa Istanbul (BIST). Design/methodology/approach: The data collection methodology of the study is content analysis of annual reports of the corporations listed on the BIST for the year 2010. In order to analyze the results, we employed Ordinary Least Square (OLS) and Two-Stage Least Squares (2SLS) regressions to examine the association between the explanatory variables and voluntary disclosure level. Findings: The findings provide evidence of a positive association between voluntary information disclosure level and the variables such as firm size, auditing firm size, proportion of independent directors on the board, institutional/corporate ownership, and corporate governance. However, leverage and ownership diffusion were found to have negative significant association with the extent of voluntary disclosure. The remaining variables, namely, profitability, listing age, and board size were found to be insignificant. Research limitations/implications: The study has got some implications for emerging markets particularly. Voluntary disclosure contributes to alleviate the agency costs arising from information asymmetry, makes the firms more transparent and accountable, and opens the way for capital flow emerging markets need to finance growth. Therefore, the subject is quite important for emerging markets. The study has some implications for firms, auditors, investors, and regulators. All these parties play an important role in improving the transparency and disclosure practices of corporations. Since this study was conducted solely on listed manufacturing companies, the results may not be generalizable to non-listed and non-manufacturing industries. Originality/value: We extend previous research on the determinants of voluntary information disclosure in the emerging market context. Originality/value: We extend previous research on the determinants of voluntary information disclosure in the emerging market context.
FULL TEXT (PDF): 
PDF icon arastirmax-association-between-firm-characteristics-and-corporate-voluntary-disclosure-evidence-turkish-listed-companies.pdf
  • 4
1080
1112
  • Spanish

JEL Codes:

REFERENCES

References: 

ABDULLAH, A.; KU ISMAIL, K.N.I. (2008). Disclosure of voluntary accounting ratios by
Malaysian listed companies. Journal of Financial Reporting and Accounting, 6(1): 1-20.
http://dx.doi.org/10.1108/19852510880000632
AHMED, K.; COURTIS, J.K. (1999). Associations between corporate characteristics and
disclosure levels in annual reports: A meta-analysis. British Accounting Review, 31(1):
35-61. http://dx.doi.org/10.1006/bare.1998.0082
AKERLOF, G.A. (1970). The market for ‘lemons’: Quality uncertainty and the market
mechanism. The Quarterly Journal of Economics, 84(3): 488-500.
http://dx.doi.org/10.2307/1879431
AKISIK, O.; GAL, G. (2011). Sustainability in businesses, corporate social responsibility, and
accounting standards: An empirical study. International Journal of Accounting and
Information Management, 19(3): 304-324. http://dx.doi.org/10.1108/18347641111169287
AKSU, M.; KOSEDAG, A. (2006). Transparency and disclosure scores and their determinants in
the Istanbul Stock Exchange. Corporate Governance, 14(4): 277-296.
http://dx.doi.org/10.1111/j.1467-8683.2006.00507.x
ALP, A.; USTUNDAG, S. (2009). Financial reporting transformation: The experience of Turkey.
Critical Perspectives on Accounting, 20(5): 680-699. http://dx.doi.org/10.1016/j.cpa.2007.12.005
ALSAEED, K. (2006). The association between firm-specific characteristics and disclosure: The
case of Saudi Arabia. Managerial Auditing Journal, 21(5): 476-496.
http://dx.doi.org/10.1108/02686900610667256
ARIPIN, N.; TOWER, G.; TAYLOR, G. (2009). Reporting financial ratios in annual reports:
Voluntary disclosure perspective. Paper Presented at the 10th Annual Asian Academic
Accounting Association Conference, Conference Proceedings E-Book, Istanbul, Turkey:
1818-1842.
BARAKO, D.G.; HANCOCK, P.; IZAN, I.H.Y. (2006). Relationship between corporate governance
attributes and voluntary disclosures in annual reports: The Kenyan experience. Financial
Reporting, Regulation and Governance, 5(1): 1-26.
BEATTIE, V.; MCINNES, B.; FEARNLEY, S. (2004). A methodology for analysing and evaluating
narratives in annual reports: a comprehensive descriptive profile and metrics for disclosure
quality attributes. Accounting Forum, 28: 205-236. http://dx.doi.org/10.1016/j.accfor.2004.07.001
BELAL, A.R.; COOPER, S. (2011). The absence of corporate social responsibility reporting in
Bangladesh. Critical Perspectives on Accounting, 22(7): 654-667.
ttp://dx.doi.org/10.1016/j.cpa.2010.06.020
BEYER, A.; COHEN, D.A.; LYS, T.Z.; WALTHER, B.R. (2010). The financial reporting
environment: Review of the recent literature. Journal of Accounting and Economics, 50(2):
296-343. http://dx.doi.org/10.1016/j.jacceco.2010.10.003
BIST (BORSA ISTANBUL). (2009). Web site of the Borsa Istanbul. http://www.
http://borsaistanbul.com/. (Last acess date: February, 2009).
BOESSO, G.; KUMAR, K. (2007). Drivers of corporate voluntary disclosure: A framework and
empirical evidence from Italy and the United States. Accounting, Auditing and
Accountability Journal, 20(2): 269-296. http://dx.doi.org/10.1108/09513570710741028
BOKPIN, G.A.; ISSHAQ, Z. (2009). Corporate governance, disclosure and foreign share
ownership on the Ghana Stock Exchange. Managerial Auditing Journal, 24(7): 688-703.
http://dx.doi.org/10.1108/02686900910975387
BOTOSAN, C.A. (1997). Disclosure level and the cost of equity capital. The Accounting Review,
72(3): 323-349.
BRYMAN, A.; CRAMER, D. (2001). Quantitative Data Analysis with SPSS Release 10 for
Windows: A guide for Social Scientists (1st ed.). United Kingdom, London: Routledge.
BUSHEE, B.J.; NOE, C.F. (2000). Corporate disclosure practices, institutional investors, and
stock return volatility. Journal of Accounting Research, 38(Supplement 2000): 171-202.
http://dx.doi.org/10.2307/2672914
CERF, A.R. (1961). Corporate Reporting and Investment Decisions (1st ed.). United States,
California, Berkeley, CA: University of California Press.
CHAU, G.; GRAY, S.J. (2010). Family ownership, board independence and voluntary disclosure:
Evidence from Hong Kong. Journal of International Accounting, Auditing and Taxation,
19(2): 93-109. http://dx.doi.org/10.1016/j.intaccaudtax.2010.07.002
CHEN, C.; JAGGI, B. (2000). Association between independent non-executive directors, family
control and financial disclosures in Hong Kong. Journal of Accounting and Public Policy,
19(4): 285-310. http://dx.doi.org/10.1016/S0278-4254(00)00015-6
CHENG, E.C.M.; COURTENAY, S.M. (2006). Board composition, regulatory regime and
voluntary disclosure. The International Journal of Accounting, 41(3): 262-289.
http://dx.doi.org/10.1016/j.intacc.2006.07.001
CHEUNG, Y-L.; JIANG, P.; TAN, W. (2010). A transparency disclosure index measuring
disclosures: Chinese listed companies. Journal of Accounting and Public Policy, 29(3):
259-280. http://dx.doi.org/10.1016/j.jaccpubpol.2010.02.001
CMB (CAPITAL MARKETS BOARD OF TURKEY) (2005). Corporate governance principles.
http://www.cmb.gov.tr. (Last access date: February, 2009).
COOKE, T.E. (1989). Voluntary corporate disclosure by Swedish companies. Journal of
International Financial Management and Accounting, 1(2): 171-195.
http://dx.doi.org/10.1111/j.1467-646X.1989.tb00009.x
CORMIER, D.; GORDON, I.M. (2001). An examination of social and environmental reporting
strategies. Accounting, Auditing and Accountability Journal, 14(5): 587-616.
http://dx.doi.org/10.1108/EUM0000000006264
DEPOERS, F.; JEANJEAN, T. (2010). Determinants of quantitative information withholding in
annual reports. European Accounting Review, First Article: 1-37.
EL-GAZZAR, S.M. (1998). Predisclosure information and institutional ownership: A crosssectional
examination of market revaluations during earnings announcement periods. The
Accounting Review, 73(1): 119-129.
ELLIOTT, R.K.; JACOBSON, P.D. (1994). Cost and benefits of business information disclosure.
Accounting Horizons, 8(4): 80-96.
ENG, L.L.; MAK, Y.T. (2003). Corporate governance and voluntary disclosure. Journal of
Accounting and Public Policy, 22(4): 325-345. http://dx.doi.org/10.1016/S0278-4254(03)00037-1
FAMA, E.F. (1980). Agency problems and theory of the firm. Journal of Political Economy,
88(2): 288-307. http://dx.doi.org/10.1086/260866
FORKER, J.J. (1992). Corporate governance and disclosure quality. Accounting and Business
Research, 22(86): 111-124.
FREEDMAN, M.; JAGGI, B. (2005). Global warming, commitment to the Kyoto Protocol, and
accounting disclosures by the largest global public firms from polluting industries. The
International Journal of Accounting, 40(3): 215-232.
http://dx.doi.org/10.1016/j.intacc.2005.06.004
GAO, S.S.; HERAVI, S.; XIAO, J.Z. (2005). Determinants of corporate social and environmental
reporting in Hong Kong: A research note. Accounting Forum, 29(2): 233-242.
http://dx.doi.org/10.1016/j.accfor.2005.01.002
GRAY, R.; KOUHY, R.; LAVERS, S. (1995). Constructing a research database of social and
environmental reporting by UK companies: A methodological note. Accounting, Auditing and
Accountability Journal, 8(2): 78–101. http://dx.doi.org/10.1108/09513579510086812
GUJARATI, N.D.; PORTER, D.C. (2009). Basic Econometrics (5th ed.). McGraw Hill International
Edition.
GUL, F.A.; LEUNG, S. (2004). Board leadership, outside directors’ expertise and voluntary
corporate disclosures. Journal of Accounting and Public Policy, 23(5): 351-379.
http://dx.doi.org/10.1016/j.jaccpubpol.2004.07.001
HAAT, M.H.C.; RAHMAN, A.R.; MAHENTHIRAN, S. (2008). Corporate governance, transparency
and performance of Malaysian companies. Managerial Auditing Journal, 23(8): 744-778.
http://dx.doi.org/10.1108/02686900810899518
HAIR, J.F.; BLACK, W.C.; BABIN, B.J.; ANDERSON, R.E. (2009). Multivariate Data Analysis (7th
ed.). United States, New York: Pearson.
HANIFFA, R.M.; COOKE, T.E. (2002). Culture, corporate governance and disclosure in
Malaysian corporations. Abacus, 38(3): 317-349. http://dx.doi.org/10.1111/1467-6281.00112
HASSAN, O.A.G.; GIORGIONI, G.; ROMILLY, P.; POWER, D. (2009). The value-relevance of
disclosure: Evidence from the emerging capital market of Egypt. The International Journal
of Accounting, 44(1): 79-102. http://dx.doi.org/10.1016/j.intacc.2008.12.005
HEALY, P.M.; PALEPU, K.G. (2001). Information asymmetry, corporate disclosure, and the
capital markets: A review of the empirical disclosure literature. Journal of Accounting and
Economics, 31(1): 405-440. http://dx.doi.org/10.1016/S0165-4101(01)00018-0
HEALY, P.M.; HUTTON, A.P.; PALEPU, K.G. (1999). Stock performance and intermediation
changes surrounding sustained increases in disclosure. Contemporary Accounting Research,
16(3): 485-520. http://dx.doi.org/10.1111/j.1911-3846.1999.tb00592.x
HO, S.S.M.; WONG, K.S. (2001). A study of the relationship between corporate governance
structures and the extent of voluntary disclosure. Journal of International Accounting,
Auditing and Taxation, 10(2): 139-156. http://dx.doi.org/10.1016/S1061-9518(01)00041-6
HOSSAIN, M.; HAMMAMI, H. (2009). Voluntary disclosure in the annual reports of an emerging
country: The case of Qatar. Advances in Accounting, Incorporating Advances in
International Accounting, 25(2): 255-265.
HOSSAIN, M.; REAZ, M. (2007). The determinants and characteristics of voluntary disclosure
by Indian banking companies. Corporate Social Responsibility and Environmental
Management, 14(5): 274-288. http://dx.doi.org/10.1002/csr.154
HOSSAIN, M.; PERERA, M.H.B.; ABDUL RAHMAN, R. (1995). Voluntary disclosure in the annual
reports of New Zealand companies. Journal of International Financial Management and
Accounting, 6(1): 69-87. http://dx.doi.org/10.1111/j.1467-646X.1995.tb00050.x
HUAFANG, X.; JIANGUO, Y. (2007). Ownership structure, board composition and corporate
voluntary disclosure: Evidence from listed companies in China. Managerial Auditing Journal,
22(6): 604-619. http://dx.doi.org/10.1108/02686900710759406
INCHAUSTI, B.G. (1997). The influence of company characteristics and accounting regulation
on information disclosed by Spanish firms. The European Accounting Review, 6(1): 45-68.

http://dx.doi.org/10.1080/096381897336863
JENSEN, M.C.; MECKLING, W.H. (1976). Theory of the firm: Managerial behavior, agency costs
and ownership structure. Journal of Financial Economics, 3(4): 303-360.
http://dx.doi.org/10.1016/0304-405X(76)90025-8
JOHN, K.; SENBET, L.W. (1998). Corporate governance and board effectiveness. Journal of
Banking and Finance, 22(4): 371-403. http://dx.doi.org/10.1016/S0378-4266(98)00005-3
KANTO, A.J.; SCHADEWITZ, H.J. (1997). A multidimensional model for the disclosure policy of
a firm. Scandinavian Journal of Management, 13(3): 229-249. http://dx.doi.org/10.1016/S0956-
5221(97)00007-9
KIMBRO, M.B.; CAO, Z. (2011). Does voluntary corporate citizenship pay? An examination of
the UN Global Compact. International Journal of Accounting and Information Management,
19(3): 288-303. http://dx.doi.org/10.1108/18347641111169278
KRIPPENDORFF, K. (1980). Content analysis: An introduction to its methodology. Beverly Hills,
CA: Sage Publications.
LIM, S.; MATOLCSY, Z.; CHOW, D. (2007). The association between board composition and
different types of voluntary disclosure. European Accounting Review, 16(3): 555-583.
http://dx.doi.org/10.1080/09638180701507155
LINDBLOM, C.K. (1994). The Implications of Organizational Legitimacy for Corporate Social
Performance and Disclosure. Paper presented at the Critical Perspectives on Accounting
Conference, New York.
LOPES, A.B.; ALENCAR, R.C. (2010). Disclosure and cost of equity capital in emerging
markets: The Brazilian case. The International Journal of Accounting, 45(4): 443-464.
http://dx.doi.org/10.1016/j.intacc.2010.09.003
MALONE, D.; FRIES, C.; JONES, T. (1993). An empirical investigation of the extent of
Corporate financial disclosure in the oil and gas industry. Journal of Accounting, Auditing
and Finance, 8(3): 249-273.
MARSTON, C. (2003). Financial reporting on the internet by leading Japanese companies.
Corporate Communications: An International Journal, 8(1): 23-34.
http://dx.doi.org/10.1108/13563280310458894
MARSTON, C.; POLEI, A. (2004). Corporate reporting on the internet by German companies.
International Journal of Accounting Information Systems, 5(3): 285-311.
http://dx.doi.org/10.1016/j.accinf.2004.02.009
MEEK, G.K.; GRAY, S.J.; ROBERTS, C.B. (1995). Factors influencing voluntary annual report
disclosures by US, UK and continental European multinational corporations. Journal of
International Business Studies, 26(3): 555-572. http://dx.doi.org/10.1057/palgrave.jibs.8490186
MUN, E.C.C.; COURTENAY, S.M.; RAHMAN, A.R. (2011). Effects of prior voluntary disclosure on
earnings announcements in an environment with low information and regulation. Pacific-
Basin Finance Journal, 19(3): 308-329. http://dx.doi.org/10.1016/j.pacfin.2010.12.004
NASER, K.; AL-HUSSAINI, A.; AL-KWARI, D.; NUSEIBEH, R. (2006). Determinants of corporate
social disclosure in developing countries: The case of Qatar. Advances in International
Accounting, 19: 1-23. http://dx.doi.org/10.1016/S0897-3660(06)19001-7
OWUSU-ANSAH, S. (1998). The impact of corporate attributes on the extent of mandatory
disclosure and reporting by listed companies in Zimbabwe. The International Journal of
Accounting, 33(5): 605-631. http://dx.doi.org/10.1016/S0020-7063(98)90015-2
OYELERE, P.; LASWAD, F.; FISHER, R. (2003). Determinants of internet financial reporting by
New Zealand companies. Journal of International Financial Management and Accounting,
14(1): 26-63. http://dx.doi.org/10.1111/1467-646X.00089

PATELLI, L.; PRENCIPE, A. (2007). The relationship between voluntary disclosure and
independent directors in the presence of a dominant shareholder. European Accounting
Review, 16(1): 5-33. http://dx.doi.org/10.1080/09638180701265820
PATTON, J.; ZELENKA, I. (1997). An empirical analysis of the determinants of the extent of
disclosure in annual reports of joint stock companies in the Czech Republic. The European
Accounting Review, 6(4): 605–626. http://dx.doi.org/10.1080/09638189700000003
RAFFOURNIER, B. (1995). The determinants of voluntary financial disclosure by Swiss listed
companies. The European Accounting Review, 4(2): 261-280.
http://dx.doi.org/10.1080/09638189500000016
SAMAHA, K.; DAHAWY, K.; ABDEL-MEGUID, A.; ABDALLAH, S. (2012). Propensity and
comprehensiveness of corporate internet reporting in Egypt: Do board composition and
ownership structure matter?. International Journal of Accounting and Information
Management, 20(2), 142-170. http://dx.doi.org/10.1108/18347641211218452
SINGHVI, S.S.; DESAI, H.B. (1971). An empirical analysis of the quality of corporate financial
disclosure. The Accounting Review, 46(1): 120-138.
SMITH, J.L.; ADHIKARI, A.; TONDKAR, R.H. (2005). Exploring differences in social disclosures
internationally: A stakeholder perspective. Journal of Accounting and Public Policy, 24(2):
123-151. http://dx.doi.org/10.1016/j.jaccpubpol.2004.12.007
SOBHANI, F.A.; AMRAN, A.; ZAINUDDIN, Y. (2009). Revisiting the practices of corporate social
and environmental in Bangladesh. Corporate Social Responsibility and Environmental
Management, 16(3): 167-183. http://dx.doi.org/10.1002/csr.193
TSAMENYI, M.; ENNINFUL-ADU, E.; ONUMAH, J. (2007). Disclosure and corporate governance
in developing countries: Evidence from Ghana. Managerial Auditing Journal, 22(3):
319-334. http://dx.doi.org/10.1108/02686900710733170
UYAR, A. (2009). An analysis of graphic disclosure in annual reports: The case of Turkey.
Managerial Auditing Journal, 24(5): 423-444. http://dx.doi.org/10.1108/02686900910956793
UYAR, A. (2011). Firm characteristics and voluntary disclosure of graphs in annual reports of
Turkish listed companies. African Journal of Business Management, 5(17): 7651-7657.
UYAR, A. (2012). Determinants of corporate reporting on the internet: an analysis of
companies listed on the Istanbul Stock Exchange. Managerial Auditing Journal, 27(1):
87-104. http://dx.doi.org/10.1108/02686901211186117
UYAR, A.; KILIÇ, M. (2012a). The influence of firm characteristics on disclosure of financial
ratios in annual reports of Turkish firms listed in the Istanbul Stock Exchange. International
Journal of Accounting, Auditing and Performance Evaluation, 8(2): 137-156.
http://dx.doi.org/10.1504/IJAAPE.2012.046603
UYAR, A.; KİLİÇ, M. (2012b). Value relevance of voluntary disclosure: Evidence from Turkish
firms. Journal of Intellectual Capital, 13(3): 363-376.
WALLACE, R.S.O.; NASER, K.; MORA, A. (1994). The relationship between the
comprehensiveness of corporate annual reports and firm characteristics in Spain.
Accounting and Business Research, 25(97): 41-53.
WATSON, A.; SHRIVES, P.; MARSTON, C. (2002). Voluntary disclosure of accounting ratios in
the UK. British Accounting Review, 34(4): 289-313. http://dx.doi.org/10.1006/bare.2002.0213

Thank you for copying data from http://www.arastirmax.com