International Journal of Social Science & Economic Research
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Robert O. Opanyi

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Robert O. Opanyi
University of Nairobi, Kenya.

Opanyi, Robert O. "CORPORATE VOLUNTARY DISCLOSURE AND THE VALUE OF THE FIRM: A CRITICAL LITERATURE REVIEW." Int. j. of Social Science and Economic Research, vol. 4, no. 9, Sept. 2019, pp. 5922-5957, Accessed Sept. 2019.
Opanyi, R. (2019, September). CORPORATE VOLUNTARY DISCLOSURE AND THE VALUE OF THE FIRM: A CRITICAL LITERATURE REVIEW. Int. j. of Social Science and Economic Research, 4(9), 5922-5957. Retrieved from
Opanyi, Robert O. "CORPORATE VOLUNTARY DISCLOSURE AND THE VALUE OF THE FIRM: A CRITICAL LITERATURE REVIEW." Int. j. of Social Science and Economic Research 4, no. 9 (September 2019), 5922-5957. Accessed September, 2019.

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There has been mounting academic interest in corporate disclosure and in specific corporate voluntary disclosure (CVD). Mandatory financial disclosure has been criticized as having inherent limitations and does not provide important drivers of firm's value in critical areas of the business. CVD has been viewed as being able to mitigate traditional financial reporting inherent shortcoming. This desk review investigates the economic benefit of CVD. The objective of this study paper is to explore the methodologies used in prior studies in investigating the economic outcomes of CVD and subsequently understand the relationship between CVD and firm value. From the review of finding, the prevailing theory supports the hypothesis that increased information disclosure has impact on company value through direct effects on organisation's cost of capital and/or indirect effects on organisation's cash flow. In addition, CVD enhances firm reputation in the marketplace that can be a basis of competitive edge and increase firm value. Theoretical literature supports the relation between CVD, information asymmetry and firm value. However, a confusing disclosure rage exist among academic about the economic benefit of CVD. The study recommends more research efforts in bridging the knowledge gap by exploring the causality link between CVD and company's value, and by addressing methodological issues. Also, recommends future research efforts to consider convergence between the financial and management accounting systems and thus explore study towards integrated reporting and its value relevance.