Stronger corporate governance boosts transparency, builds public trust in firms
The study looked at how corporate governance affects the amount of information companies choose to share voluntarily. Data from 93 nonfinancial firms on the Athens Stock Exchange in 2017 was used to create a voluntary disclosure index. The results showed that some aspects of corporate governance, like block ownership and board independence, can decrease voluntary disclosure, while others, like board and audit committee size, can increase it. The size of the firm and the audit firm also had a positive impact on voluntary disclosure. These findings suggest that certain corporate governance structures can help companies build trust with investors and reduce conflicts with related parties.