DETERMINANT OF VOLUNTARY DISCLOSURE BY
MALAYSIAN PUBLIC LISTED COMPANIES
CHAN SHEE ING
ABSTRACT
This study investigated the potential
relationship between the firm-specific characteristics and the extent of
voluntary disclosure of the listed companies. The
firm-specific characteristics, which were functioning as independent variables
were categorized into three groups, namely structure-related (firm size),
market related (type of industry, audit form size, and listing status), and performance-related
(profitability and liquidity). A unweighted voluntary disclosure index, as dependent
variable in this study, and relevant scoring approach was utilized to measure
the extent of voluntary disclosure as provided in the annual reports of the
sample firm’s annual reports during year 2002/ 2003. Using multiples regression
analysis, it was found that there was a significant association between firm
size, type of industry, return on equity, profit margin and the extent of
voluntary disclosure of the Malaysian public listed companies. The results
indicates that the results have shown that the amount of voluntary information
disclosure in annual reports and accounts increased with firm size, type of
industry, profit margin, and return on equity. These findings were consistent
with the predictions of theoretical framework and foundation used in this
study; however, no support was found for the significance of other variables,
namely leverage, ownership structure, audit firm size, listing status and
liquidity. In short, the study contributes to the enhancement of knowledge regarding
corporate financial reporting and disclosure practices under the new reporting
regime in
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B. A. (Hons) In Accounting
Number: 5