The Relationship between the board of directors structure with Financial Transparency And Voluntary Disclosure

One of the most important issues in corporate governance studies is figuring out the board of directors effect on voluntary disclosure of information in order to write off the information asymmetry. In this study we examine the association between the three attributions of the board of directors-include CEO Duality, board's size and the percent of institutional investors ownership- and voluntary disclosure and corporate transparency. Our measure of financial transparency and voluntary disclosure is based on the amount of voluntary disclosure provided in 1391 board's annual statement of a sample of 155 manufacturing firms. Voluntary disclosure got measured by 30 indexes that used in prior studies with some adjustments. Our results indicate that our model can explain 14/8 percent of changes in voluntary disclosure and financial transparency. Our result also indicate that the firms with high percent of institutional investors ownership have significantly lower levels of voluntary disclosure and financial transparency. On the other hand the CEO duality and board size have no effect on firms voluntary disclosure and their financial transparency.