Corporate Boards, Audit Committees and Voluntary Disclosure: A Case Analysis on Bangladeshi Listed Companies


  •   Fakrul Ahmed


The study tries to find the interaction of corporate disclosure and governance within the organization, focused stakeholders, and shareholders representation with internal information in the board. The paper investigates seven governance variables as the willful release of information proxy concentrated on organizational structure and functioning. Multiple regression has been performed to identify the explanatory power of the variables. The results are very much similar and consistent with the understanding that both internal and external control exist simultaneously to affect the shareholders' control to restrict each other. The results suggest that the size of the board does not affect the external control of voluntary disclosure. This paper can help to exhibit the relationship between proper and transparent corporate governance and required disclosure to reduce agency conflicts. This paper focused on the existing companies listed in the stock exchanges to identify and develop model to improve the agency setting. The paper should be interesting for the regulators, stakeholders, and practitioners to construct consistent policies with calls for more disclosure requirements in this agency setting.

Keywords: Corporate Governance, Liquidity, Leverage, Bangladesh


Ahamed, F. (2021). Determinants of Liquidity Risk in the Commercial Banks in Bangladesh. European Journal of Business and Management Research, 6(1), 164-169.

Ahmed, K., & Courtis, J. K. (1999). Associations between corporate characteristics and disclosure levels in annual reports: A meta-analysis. The British Accounting Review, 31, 35–61.

Ahmed, K., & Nicholls, D. (1994). The impact of non-financial company characteristics on mandatory disclosure compliance in developing countries: The case of Bangladesh. The International Journal of Accounting, 29(1), 62–77.

Ajinkya, B., Bhojraj, S., & Sengupta, P. (2005). The association between outside directors, institutional investors and the properties of management earnings forecasts. Journal of Accounting Research, 43(3), 343–375.

Akhtaruddin, M., Hossain, M. A., Hossain, M., & Yao, L. (2009). Corporate governance and voluntary disclosure in corporate annual reports of malaysian listed firms. Journal of Applied Management Accounting Research, 7(1), 1–21.

ANDAF (Italian National Association of Chief Financial Officers). (2008). Gli annual report delle societa` italiane. Rome: ANDAF Publishing.

Anderson, R. C., & Reeb, D. M. (2004). Board composition: Balancing family influence in S&P 500 firms. Administrative Science Quarterly, 49(2), 209–237.

Claessens, S., & Djankov, S. (1999). Ownership concentration and corporate performance in the Czech Republic. Journal of comparative economics, 27(3), 498-513.

Cheng, E. C., & Courtenay, S. M. (2006). Board composition, regulatory regime and voluntary disclosure. The international journal of accounting, 41(3), 262-289.

Chen, C. J., & Jaggi, B. (2000). Association between independent non-executive directors, family control and financial disclosures in Hong Kong. Journal of Accounting and Public policy, 19(4-5), 285-310.

Darrough, M. N., & Stoughton, N. M. (1990). Financial disclosure policy in an entry game. Journal of accounting and economics, 12(1-3), 219-243.

DeAngelo, H., & DeAngelo, L. (2000). Controlling stockholders and the disciplinary role of corporate payout policy: A study of the Times Mirror Company. Journal of financial economics, 56(2), 153-207.

Dyck, A., & Zingales, L. (2004). Private benefits of control: An international comparison. The journal of finance, 59(2), 537-600.

Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. The journal of law and Economics, 26(2), 301-325.

Faccio, M., Lang, L. H., & Young, L. (2001). Dividends and expropriation. American economic review, 91(1), 54-78.

Gul, F. A., & Leung, S. (2004). Board leadership, outside directors’ expertise and voluntary corporate disclosures. Journal of Accounting and public Policy, 23(5), 351-379.

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360.

Larmou, S., & Vafeas, N. (2010). The relation between board size and firm performance in firms with a history of poor operating performance. Journal of Management & Governance, 14(1), 61-85.

La Porta, R., Lopez‐de‐Silanes, F., Shleifer, A., & Vishny, R. W. (1997). Legal determinants of external finance. The journal of finance, 52(3), 1131-1150.

Leftwich, R. W., Watts, R. L., & Zimmerman, J. L. (1981). Voluntary corporate disclosure: The case of interim reporting. Journal of accounting research, 50-77.

Marco Allegrini & Giulio Greco (2011) Corporate boards, audit committees and voluntary disclosure: evidence from Italian Listed Companies, Springer Science+Business Media, LLC.

Patelli, L., & Prencipe, A. (2007). The relationship between voluntary disclosure and independent directors in the presence of a dominant shareholder. European Accounting Review, 16(1), 5-33.

Rediker, K. J., & Seth, A. (1995). Boards of directors and substitution effects of alternative governance mechanisms. Strategic management journal, 16(2), 85-99.

Verrecchia, R. E. (1990). Endogenous proprietary costs through firm interdependence. Journal of accounting and economics, 12(1-3), 245-250.

Yermack, D. (1996). Higher market valuation of companies with a small board of directors. Journal of financial economics, 40(2), 185-211.


Download data is not yet available.


How to Cite
Ahmed, F. (2021). Corporate Boards, Audit Committees and Voluntary Disclosure: A Case Analysis on Bangladeshi Listed Companies. European Journal of Business and Management Research, 6(2), 153–155.