Voluntary disclosure in emerging countries: a literature review
Journal of Accounting in Emerging Economies
ISSN: 2042-1168
Article publication date: 5 February 2018
Abstract
Purpose
The purpose of this paper is to explore the approaches used by researchers in examining the influences of external factors towards voluntary disclosure in emerging countries.
Design/methodology/approach
The data collected in this study were collected through a review of empirical literature based on 35 articles published between 1998 and 2013. The sample articles on the link between external factors and the level of voluntary disclosure were located by searching keywords in the most relevant social science research databases such as Business Source Premier, Emerald full text, JSTOR, Science Direct, Scopus, and Social Science Research Network.
Findings
The result reveals that research in voluntary disclosure practices by companies in emerging countries remains low. The majority of studies employed content analysis to examine the extent of voluntary disclosure practices. Results from studies show that greater regulatory enforcement in the region and increase in stakeholders’ comprehension about their rights and choices with regards to business activities can influence the majority of the companies to provide voluntary disclosure. The literature revealed that social responsibility and environmental information are the popular categories of voluntary disclosure while risk and human capital/intellectual capital are the least popular categories.
Research limitations/implications
The paper is limited to a review of 35 articles.
Practical implications
The study provides avenues for policy makers and regulators to carry out reforms on voluntary disclosure practices.
Social implications
The findings may provide insights to capital market regulators when conducting effective regulation and supervision of information transparency in listed companies.
Originality/value
Since limited studies exist that examine voluntary disclosure in emerging countries, little is known about the implications of external factors such as a country’s policy, regulations, stakeholders, and business environment on voluntary disclosure practices. This paper contributes to filling this gap by a review of articles of empirical research on voluntary disclosure in emerging countries.
Keywords
Acknowledgements
An earlier version of this paper was presented at the Eighth Asia Pacific Interdisciplinary Research in Accounting Conference 2016 at RMIT, Melbourne, Australia. The authors would like to thank the discussant Pam Stapleton and the participants at the above conference for their constructive suggestions on the improvement of the paper. The authors also would like to thank the Editor, Professor Shahzad Uddin, and the two anonymous reviewers for their insightful comments, which have helped the authors to improve the paper.
Citation
Md Zaini, S., Samkin, G., Sharma, U. and Davey, H. (2018), "Voluntary disclosure in emerging countries: a literature review", Journal of Accounting in Emerging Economies, Vol. 8 No. 1, pp. 29-65. https://doi.org/10.1108/JAEE-08-2016-0069
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited