Concept of Voluntary Information Disclosure and A Review of Relevant Studies

Yu Tian, Jingliang Chen

Abstract


Along with the economic development, the compulsory information disclosure of listed companies can not satisfy investors’ diversified information needs. The society advances higher requirements for listed companies’ information disclosure, which drives listed companies to disclose more information voluntarily. Recently, voluntary disclosure has gradually become a focus domestic and abroad because voluntary disclosure has positive impacts on the communication of corporate management agency and interests-related parties, the decrease of information asymmetry of investors, and the improvement of quality of disclosed information. On one hand, voluntary disclosure can detail and deepen compulsory disclosure, improving the credibility and completeness of compulsory disclosure. On the other hand, it can complement and expand the compulsory disclosure, for the sake of realizing the more complete, diversified, and systematic information disclosure. Therefore, the voluntary disclosure serves as an effective way for communicating interest-related parties and describing the corporate prospect. It is meaningful for perfecting listed companies’ governance structure and enhancing the protection for investors’ interests.


Full Text: PDF DOI: 10.5539/ijef.v1n2p55

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International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

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