This paper aims to examine the economic consequences of corporate voluntary disclosure in Egyptian listed companies. We hypothesised that corporate voluntary disclosure has economic impact, which it can influence investors’ perceptions toward companies and consequently it can influence corporate market value. To examine economic consequences, we used both qualitative study to gather investors’ perceptions toward the importance of corporate voluntary disclosure, and quantitative study to examine the impact of voluntary disclosure on corporate market value measured by Tobin’s Q. We measured the voluntary disclosure in both annual reports and corporate web sites using disclosure index, in addition to various financial data as an indicator for economic performance. Both correlation and regression tests was performed to examine the hypotheses. The results showed that the investors seem to pay attention of CVD and there is weak significant association between CVD and corporate market value. This result could reflect that the content of voluntary disclosure provided by companies in both annual reports and web sites has economic value, to some extent, and it is important for investors. Also, the results seem to be consistent with the context of economic approach more than political economy approach context. |
