期刊名称：European Journal of Business and Social Sciences
印刷版ISSN：2235-767X
出版年度：2016
卷号：5
期号：6
页码：167-184
出版社：European Society of Business and Social Sciences
摘要：Voluntary disclosure represents one of the pillars of corporate governance. Numerousscandals have occurred worldwide due to lack or improper corporate disclosures. Ithas been argued that managers should voluntarily disclose information that wouldsatisfy the needs of various stakeholders. Voluntary disclosure is aimed at providing a clearview to stakeholders about the business’s long-term sustainability and reducing informationasymmetry and agency conflicts between managers and investors. The main objective of thisstudy was to investigate the effect of voluntary disclosure on the financial performance ofcommercial banks in Rwanda. To achieve this the study examined general and strategicdisclosure, financial disclosure, forward looking disclosure, social board disclosure as a proxyfor measuring voluntary disclosure and firm characteristics and how they affect the financialperformance of commercial banks in Rwanda. Firm performance was measured using Returnon Equity (ROE). This study adopted a descriptive research design. The study took a sample of14 commercial banks in Rwanda. Census approach was used to determine the sample size.Data was collected through developing a disclosure index consisting of 47 disclosure items.Secondary data was collected using documentary information from Banks annual accounts forthe period 2011 to 2015. Data was analyzed using a multiple linear regression model. Resultsrevealed that a strong relationship exist between the voluntary disclosure, firm size andfinancial performance. The study found a positive relationship between financial, forwardlooking and board and social disclosure and return on equity. A 1% increase in financialdisclosure leads to a 54% increase in financial performance of commercial banks, while a 1%increase in forward looking disclosure leads to a 33.9% increase in return on equity and a 1%increase in board and social disclosure leads to a 50.3% increase in return on equity. On theother hand, the study found a negative relationship between general & strategic disclosureand return on equity. This means that a 1% increase in strategic disclosure leads to a 20.2%decrease in return on equity of a firm. The study concluded that firms should lean towardsdisclosure of financial and social board disclosure to increase their performance. Thisrelationship is expected as firms disclose more its information asymmetry reduces whichreduces cost of capital. The study recommends more study on the role played by voluntarydisclosure on other sectors like agriculture to enrich the study in Rwanda.
关键词：Voluntary disclosures; General and strategic disclosure; financial;disclosure; forward looking disclosure; social board disclosure
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