Voluntary disclosure of corporate strategy: determinants and outcomes. An empirical study into the risks and payoffs of communicating corporate strategy.

摘要

Business leaders increasingly face pressure from stakeholders to be transparent. Thereudappears however little consensus on the risks and payoffs of disclosing vital informationudsuch as corporate strategy. To fill this gap, this study analyzes firm-specific determinantsudand organisational outcomes of voluntary disclosure of corporate strategy. Stakeholderudtheory and agency theory help to understand whether companies serve their interest toudengage with stakeholders and overcome information asymmetries. I connect theseudtheories and propose a comprehensive approach to measure voluntary disclosure ofudcorporate strategy. Hypotheses from the theoretical framework are empirically testedudthrough panel regression of data on identified determinants and outcomes and ofuddisclosed strategy through annual reports, corporate social responsibility reports,udcorporate websites and corporate press releases by the 70 largest publicly listedudcompanies in the Netherlands from 2003 through 2008. I found that industry,udprofitability, dual-listing status, national ranking status and listing age have significantudeffects on voluntary disclosure of corporate strategy. No significant effects are found forudsize, leverage and ownership concentration. On outcomes, I found that liquidity of stockudand corporate reputation are significantly influenced by voluntary disclosure of corporateudstrategy. No significant effect is found for volatility of stock. My contributions to theory,udmethodology and empirics offers a stepping-stone for further research into understandingudhow companies can use transparency to manage stakeholder relations.