Relevance of firms’ voluntary information disclosure: Case of the companies listed on the Casablanca stock exchange

Abstract

This study investigates the perception of the usefulness of 40 voluntary information items expected by financial analysts, compared to the actual degree of their disclosure in the annual reports of 19 listed companies on the Casablanca Stock Exchange. Data were collected through questionnaires and content analysis of the companies' annual reports. The results reveal a significant gap between the information expected by analysts and what is disclosed, with 18 out of the 40 items showing complete divergence from expectations. The overall disclosure level does not exceed 56.64%, and the correlation between perceived usefulness and disclosure levels is weak (-0.02, not significant). These findings highlight that the current supply of voluntary information fails to meet the demands of financial analysts, indicating that market forces alone are insufficient to ensure an adequate level of disclosure. The study suggests that regulatory interventions are necessary to enhance the quality and relevance of voluntary disclosures in annual reports. It also calls on company managers to develop more comprehensive disclosure strategies to address the specific informational needs of financial analysts.

Keywords: supply, demand, voluntary disclosure, voluntary information, annual reports, financial analysts.

JEL Classification: D83, M41, N27

Paper type: Empirical research