Impact of Voluntary Corporate Disclosures on Investors with the Effective Corporate Governance Practices as Moderator

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Anshika Mishra, Ashish Kumar Srivastava, Ayushi Mishra

Abstract

The Corporate Sector is the emerging sector of the economy. It contributes to the country's GDP, creates a pool of employment opportunities, and provides a way for the investor to generate attractive returns by investing in the issues offered by the various corporate entities. The corporate sector comprises the enterprises such as corporations and joint stock companies created by the law. The statutory legislation governing this sector is the Companies Act 2013 and the key regulators are the Ministry of Corporate Affairs (MCA) and the Securities and Exchange Board of India (SEBI). Companies operate in society, so it has some responsibilities towards various stakeholders and society. Voluntary Corporate Disclosure is a mechanism through which companies can disclose all the relevant information (information that has the potential to influence the decisions of the investors) to the public in addition to what is required under mandatory disclosures.


Voluntary Corporate Disclosures include three main types of disclosures that are: Voluntary Strategic Disclosure, Voluntary Financial Disclosure, and Voluntary Non-Financial Disclosures. Such disclosures promote the transparency and accountability of the organization and reduce the possibility of window dressing and insider trading.  This paper tries to develop a thorough understanding of voluntary corporate disclosures and its implications on investors. The approach of this study is descriptive cum causal. The study is based on the primary data collected with the help of a questionnaire based on a 5-point Likert Scale. Cronbach’s Alpha was used to test the reliability of the scale. The data collected is analyzed with the help of a suitable statistical tool and presented and tabulated with the help of software named SPSS.

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How to Cite
Anshika Mishra, Ashish Kumar Srivastava, Ayushi Mishra. (2024). Impact of Voluntary Corporate Disclosures on Investors with the Effective Corporate Governance Practices as Moderator. European Economic Letters (EEL), 14(4), 1321–1328. Retrieved from https://www.eelet.org.uk/index.php/journal/article/view/2262
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