Voluntary Disclosure of Financial Targets - Empirical Evidence from Manufacturing Firms Listed on the Stockholm Stock Exchange during 2001 to 2009

Abstract

We examine 1041 annual reports individually, published by 149 manufacturing rms listed on the Stockholm Stock Exchange from 2001 to 2009. The purpose is to explain which rm characteristics in uence voluntary disclosure of nancial targets. Previous studies have focused on general di¤erences in voluntary disclosure practices and on disclosure e¤ects. This paper, however, focuses on nancial targets, an uncharted research area in the eld of voluntary disclosure and contributes the existing research with extensive empirical evidence on the rst decade of the 2000s. The result, supported by agency theory, legitimacy- and signaling theory, indicate that rm size and industry sectors in uence the degree of voluntary disclosure. Additionally, economic cycles, international disclosure practices and management behavior are plausible explanations for variations in voluntary disclosure practices.