The Impact of Size, Stock Market Listing and Industry Type on Disclosure in the Annual Reports of Japanese Listed Corporations

Abstract This paper represents a contribution to rigorous testing of Japanese financial reporting and specifically reports on the impact of size, stock market listing and industry type on disclosure, both voluntary and mandatory, in the annual reports of Japanese listed corporations. The topic is of interest because findings in one country may not be applicable to Japan because of its so-called unique business environment and unique culture. It is found that size and listing status are important explanatory variables. In addition, manufacturing corporations were found to disclose significantly more information than other types of Japanese corporations. The interaction between industry type and quotation status was also found to be significant.