Variables definitions and measurements
| Variable | Definition/measurement |
|---|---|
| Dependent variable Voluntary disclosure (VDScore) | Quantity and depth of non-mandatory information or data that is contained in the management discussion and analysis in the audited annual reports |
| Independent variables Board size (BDSZE) CEO Duality (CEODUAL) Proportion of NEDs (PNED) | Number of persons serving as directors on the company’s board at year-end t An indicator variable equal to zero if the CEO doubles as the chair of the board of directors at year-end t, otherwise one (for dual leadership structure) Number of non-executive directors divided by the total number of directors on the board |
| Auditor Type (AUDTYP) | An indicator variable equal to one if the firm is audited by a Big 4 audit firm at year-end t, otherwise zero |
| Control variables Firm size (FSZE) Profitability (ROA) Leverage (LEV) | The natural logarithm of the total assets of the firm Firm’s net profit after tax divided by its net assets and expressed as a percentage Firm’s total debts divided by its total assets |
| Variable | Definition/measurement |
|---|---|
| Quantity and depth of non-mandatory information or data that is contained in the management discussion and analysis in the audited annual reports | |
| Number of persons serving as directors on the company’s board at year-end | |
| Auditor Type (AUDTYP) | An indicator variable equal to one if the firm is audited by a Big 4 audit firm at year-end |