Uncovering factors influencing voluntary information disclosure in Japanese listed companies

Tsukuba, Japan—Voluntary disclosure of corporate social responsibility (CSR) and environmental, social, and governance (ESG) information, which is not required by law, is becoming an essential factor in gaining the trust of investors and society. However, the factors that increase companies' cautiousness in their disclosure decisions have not been fully elucidated.

The Japanese environment is unique in that non-financial information disclosure is not legally mandated. Taking advantage of this condition, the researchers analyzed the status of voluntary information disclosure among 5,915 Japanese listed companies based on quarterly data over more than 15 years. Statistical methods were used to examine systematically how factors such as financial indicators, corporate characteristics (number of employees, ISO certification, etc.), listing market segment, industry, and shareholder composition relate to decisions regarding voluntary information disclosure.

Results of the analysis revealed that international environmental (ISO 14001) and occupational health and safety (ISO 45001) certifications, large corporate size, and listing on a prime market tend to promote information literacy. However, contrary to conventional views, listing on an overseas market may restrain information literacy. Additionally, the researchers found that the attitude toward information literacy differs depending on the industry and shareholder type. These research findings are expected to provide valuable insights into understanding Japanese companies' voluntary information disclosure practices from a multifaceted perspective.

_{Original Paper}

Title of original paper:
Determinants of voluntary disclosure: An empirical analysis of financial, market, and organizational factors

Journal:
PLOS One

DOI:
10.1371/journal.pone.0324625

_{Correspondence}

Associate Professor YOSHIDA, Mitsuio
Institute of Human Sciences, University of Tsukuba

NAKAI, Yuichiro
Doctoral Program in Business Administration, Degree Programs in Business Sciences, Graduate School of Business Sciences, Humanities and Social Sciences, University of Tsukuba

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Institute of Business Sciences

Doctoral Program in Business Administration