Corporate Disclosures and Financial Performance of Selected Indian Manufacturing and Non-Manufacturing Companies

Accounting and Finance Research, Vol. 6, No. 1, 2017

14 Pages Posted: 3 Nov 2017

See all articles by Nidhi Sahore

Nidhi Sahore

Bhavan's Usha & Lakshmi Mittal Institute of Management

Anshul Verma

Institute of Management Technology (IMT), Ghaziabad

Date Written: Januray 26, 2017

Abstract

Disclosures play a pivotal role in addressing the issues related to information asymmetry and agency costs of firms. Voluntary disclosures are those disclosures witch are beyond the compulsory ones and are communicated portraying a better image of the company & its prospects in front of its investors. Therefore this study intends to extend various aspects of corporate disclosure practices, mainly voluntary disclosures of selected Indian companies. Under contract theory and economics, information asymmetry leads to superfluous decisions because of information gap between the parties. It is also important to assess the possible economic consequence of voluntary disclosures i.e. the incentive by way of enhanced firm performance. The effect of increased disclosures on stock prices is of possible interest to investing community and stakeholders at large including the policy makers and regulators. It is not just about the level of disclosures but also the type of disclosures e.g. non financial disclosure like forward looking, social, and environmental which play an important role in finding the association between the two variables. The paper contributes towards literature on voluntary disclosures. Its major contribution is focused towards economic consequences of disclosures by way of better stock returns and implications for Indian stock market regulator to assess the impact of its policy on manufacturing and non-manufacturing companies listed in CNX 100 index of National Stock Exchange.

Keywords: Voluntary disclosures, Stock Returns, Firm Performance, Voluntary Financial Disclosures, Voluntary Non-financial Disclosure

Suggested Citation

Sahore, Nidhi and Verma, Anshul, Corporate Disclosures and Financial Performance of Selected Indian Manufacturing and Non-Manufacturing Companies (Januray 26, 2017). Accounting and Finance Research, Vol. 6, No. 1, 2017. Available at SSRN: https://ssrn.com/abstract=3063824

Nidhi Sahore (Contact Author)

Bhavan's Usha & Lakshmi Mittal Institute of Management ( email )

Coppernicus Lane
Kasturba Gandhi Marg
New Delhi, 110001
India
9811522902 (Phone)
9811522902 (Fax)

Anshul Verma

Institute of Management Technology (IMT), Ghaziabad ( email )

Raj Nagar
Hapur Road
Ghaziabad, Uttar Pradesh 201001
India

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