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Voluntary disclosure of corporate social responsibility (CSR) and environmental, social, and governance (ESG) information, which is not required by law, is becoming an essential factor in gaining the trust of investors and society. However, the factors that increase companies’ cautiousness in their disclosure decisions have not been fully elucidated.
The Japanese environment is unique in that nonfinancial information disclosure is not legally mandated. Taking advantage of this condition, the researchers analyzed the status of voluntary information disclosure among 5,915 Japanese listed companies based on quarterly data over more than 15 years.
Statistical methods were used to examine systematically how factors such as financial indicators, corporate characteristics (number of employees, ISO certification, etc.), listing market segment, industry, and shareholder composition relate to decisions regarding voluntary information disclosure.
Results of the analysis reveal that international environmental (ISO 14001) and occupational health and safety (ISO 45001) certifications, large corporate size, and listing on a prime market tend to promote information literacy. The study is published in the journal PLOS One.
However, contrary to conventional views, listing on an overseas market may restrain information literacy. Additionally, the researchers found that the attitude toward information literacy differs depending on the industry and shareholder type.
These research findings are expected to provide valuable insights into understanding Japanese companies’ voluntary information disclosure practices from a multifaceted perspective.
More information:
Yuichiro Nakai et al, Determinants of voluntary disclosure: An empirical analysis of financial, market, and organizational factors, PLOS One (2025). DOI: 10.1371/journal.pone.0324625
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University of Tsukuba
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Uncovering factors influencing voluntary information disclosure in Japanese listed companies (2025, June 6)
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