The effect of voluntary disclosure, leverage, and firm size on the return on equity of Philippine listed industrial firms in 2013

• Main Authors: Celis, James Kevin T., Chan, Cedric Lewis, Tan, Leslie Wallace C., Yang, Mark Samuel L.
• Format: text
• Language: English
• Published: Animo Repository 2016
• Subjects: Rate of return > Philippines
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9875
• Institution: De La Salle University

Annual reports are a trove of information for the stakeholders of corporations. These reports contain varying levels of voluntary disclosure, which are disclosures not required by the Securities and Exchange Commission. This paper aims to look at the association of voluntary disclosure, leverage and firm size on the return of equity (ROE) of Philippine listed industrial firms in the year 2013. This paper used a scoring mechanism to transform voluntary disclosure into a quantitative data. By evaluating the annual reports of listed industrial firms, metrics and ratios such as voluntary disclosure, leverage and firm size can be found or derived. Using linear estimation methods such as Ordinary Least Squares and Feasible Generali8zed Least Squares, the results of this study suggest that voluntary disclosure and firm size have a positive effect with ROE, with the former being statistically insignificant. On the other hand, results suggest that leverage has a negative effect on ROE.