The Impact of Voluntary Disclosure on Firm's Value: Evidence from Manufacturing Firms in Bangladesh

Financial reporting includes disclosures as prescribed by regulators, but few companies go beyond mandatory requirements and provide additional information voluntarily. This study evaluates the potential impact of voluntary information disclosure on the value of firms listed on the Dhaka Stock Exchange for the period 2017-2019. The study applies GLS and system-GMM (Two-stage) estimation for detecting the magnitude of voluntary disclosure information on the firms' value. Study findings reveal a positive and significant relationship between voluntary disclosure relating to financial statistics, social responsibility information, corporate governance, and the firms' value as measured by Tobin's Q. However, there is a negative and significant relationship between company information, accounting policies, and the firms' value as measured by Tobin's Q. Study findings suggest that the impact of voluntary disclosure on the value of the firms varies with the appropriate selection of proxy measures. Nonetheless, it is believed that voluntary disclosure plays a major role in projecting a clean image in the market and in attracting potential investors with a positive note about the company's prospects.