The Impact of Voluntary Reporting on the Creation of Firm’s Value: A Longitudinal Study

Abstract

The primary objective of this study is to scrutinize the relationship between voluntary reporting and the creation of firm value within the context of Bangladesh. To achieve this, thirty banks listed on the Dhaka Stock Exchange have been chosen as the focal point of investigation, covering the time span from 2016 to 2020. The study relies predominantly on secondary data extracted from the annual reports of the selected banks. The measurement of voluntary reporting is conducted through the utilization of a checklist comprising 116 information items. Panel data regression models are employed to rigorously test the formulated hypotheses. The aggregate-level analysis of voluntary reporting practices reveals an average reporting level of approximately 55.40%. However, the results from the panel data regression analysis indicate that the voluntary reporting level does not exert a statistically significant influence on company value. This research contributes to the existing body of literature by providing empirical evidence that, in the case of a developing country such as Bangladesh, voluntary reporting alone does not lead to a substantial increase in firm value. The findings underscore the importance of considering contextual factors and the specific economic landscape when assessing the impact of voluntary reporting practices on firm value in diverse settings.

Keywords

• voluntary reporting
• firm value
• panel data regression model
• bangladesh