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

Abstract

This study systematically examines the determinants of voluntary disclosure by listed companies in Japan, where non-financial disclosure is not legally mandated. Using quarterly data from 5,915 companies between 2009 and 2024, a logistic regression analysis was conducted to assess the influence of financial indicators, company characteristics, stock exchange, industry classification, and shareholder composition. The results reveal that ISO certification (ISO 14001 and ISO 45001) significantly promotes voluntary disclosure. Firm size and listing on a prime market are positively associated with disclosure, whereas foreign market listings tend to suppress disclosure—contrary to conventional theories. Additionally, manufacturing and IT sectors are proactive in disclosure, whereas the agriculture, forestry, fishing, and mining sectors are more reluctant. Shareholder composition also plays a crucial role, with financial institution shareholders promoting disclosure and corporate shareholders suppressing it. By leveraging Japan’s unique voluntary disclosure environment, this study offers new insights into corporate transparency and the strategic design of disclosure policies.