The Impact of Corporate Governance and Ownership Structure on Voluntary Disclosure in Annual Reports among Listed Jordanian Companies

In the new economy, companies try to convey to their stakeholders that they are a good investment and Attempt highlight the good value of the company via disclosure of pertinent information in the annual reports. This paper investigates the relationship between corporate governance and ownership structure on voluntary disclosure, with a particular focus on variables affecting in voluntary disclosure of listed companies in the Amman Stock Exchange (ASE). Using a dynamic panel system GMM estimation for the period 2002-2011, this study of 72 Jordanian finds that the listed companies at ASE during 2002-2011 had shown a significant degree of voluntary disclosure in line with greater corporate governance awareness and implementation in Jordan. In particular, this paper found board activity, foreign ownership, non –executive directors and block holder ownership to be significant in influencing voluntary disclosure. Finally, this paper found that the voluntary disclosure in the annual reports does potentially affect the market capitalization.