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@article{189915,
        author = {DR. D. RAJAGOPAL},
        title = {An Empirical Study of Voluntary Disclosure Determinants in Indian Pharmaceutical Companies},
        journal = {International Journal of Innovative Research in Technology},
        year = {2025},
        volume = {12},
        number = {8},
        pages = {233-240},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=189915},
        abstract = {Voluntary disclosure has emerged as an important mechanism for enhancing corporate transparency, reducing information asymmetry, and strengthening stakeholder confidence, particularly in knowledge-intensive and highly regulated industries such as pharmaceuticals. This study examines the determinants of voluntary disclosure practices of Indian pharmaceutical companies through an empirical investigation covering the period 2018 to 2025. The study aims to analyze how firm-specific and governance-related factors influence the extent of voluntary information disclosed in corporate annual reports.
The study is based on a sample of listed Indian pharmaceutical companies, and data were collected from published annual reports and corporate governance disclosures. A Voluntary Disclosure Index (VDI) was constructed using content analysis by identifying key voluntary disclosure items related to strategy, risk management, research and development, corporate social responsibility, environmental practices, ethics, and governance. The determinants examined in the study include firm size, profitability, and board independence. Statistical tools such as descriptive statistics, correlation analysis, and multiple regression analysis were employed to analyze the data.
The empirical findings reveal that Indian pharmaceutical companies, on average, disclose nearly half of the voluntary information considered in the study, indicating a moderate level of transparency across the sector. The correlation analysis shows a positive and significant association between voluntary disclosure and all the selected determinants. The regression results further confirm that firm size, profitability, and board independence have a statistically significant and positive impact on voluntary disclosure practices. Among these, profitability emerges as the strongest determinant, suggesting that financially better-performing firms are more inclined to disclose additional information to signal performance strength and enhance credibility. The regression model explains a substantial proportion of variation in voluntary disclosure, highlighting the relevance of financial strength and governance quality in shaping disclosure behavior.
The study concludes that improving corporate governance structures and encouraging transparent reporting practices can significantly enhance voluntary disclosure in the Indian pharmaceutical industry. The findings have important implications for regulators, investors, and corporate management in promoting accountability and sustainable corporate practices.},
        keywords = {Voluntary Disclosure, Indian Pharmaceutical Companies, Corporate Governance, Firm Size, Profitability, Board Independence, Empirical Study.},
        month = {December},
        }