Effect Of Selected Board Characteristics On Voluntary Disclosure Among Manufacturing Firms Listed In Nairobi Securities Exchange

ABSTRACT

In pursuit of corporate goals agency relationship will be a recipe for conflict depending

on the levels of information asymmetry. Voluntary disclosure can be influenced by

several factors thus this study sought to find out the effect of selected board

characteristics on voluntary disclosure of manufacturing listed companies in Kenya. The

general objective of the study was to examine the effect of selected board characteristics

on voluntary disclosure among manufacturing companies listed in Kenya. The study

specifically, sought to find out the effect of board size, board independence, board

ownership, gender board diversity and audit committee on voluntary disclosure. The

study is significant to current and potential investors, government and policy makers and

academicians. The study was guided by agency, signaling and stakeholders theory. A

census approach was used to select ten companies which are listed in manufacturing

sector and have continuously traded in Nairobi Securities Exchange in 2012 to 2016. The

researcher used readily available secondary data from 2012 to 2016 for the listed

manufacturing firms. In particular, secondary data was extracted from NSE Hand Books

available from CMA libraries and audited financial reports. E-views 9 statistical

software’s were used to analyse the data collected. Data was analyzed quantitatively by

the use of descriptive statistics, correlation analysis and panel regression analysis. Results

of the study positive and significant relationship between board size, independent

directors, audit committee, gender diversity and board ownership on voluntary disclosure.

It was recommended that every manufacturing listed should optimize its board size,

independent directorship, audit committees, gender diversity and board ownership as

such to enhance voluntary disclosure.