THEIMPACTOFCORPORATE GOVERNANCE CHARACTERISTICS ANDINDEPENDENTDIRECTORSONVOLUNTARY DISCLOSURE An Empirical study on companies listed in Egyptian Stock Exchange

The aim of this paper is to understand the main factors of voluntary disclosure for companies listed in Egyptian Stock Exchange, particularly, on the effects of corporate governance and board composition on the quantity of voluntary information disclosed.  Based on a sample of 62 Egyptian listed firms, the author forms a voluntary disclosure index based on 76 items related to the information   disclosed   on   corporate   social   responsibility,    intangibles,   financial information, non-financial information and future prospects. Consistent with previous evidence, independent directors significantly impact the quantity of voluntary information disclosed among Egyptian firms. However, in opposition to García y Gill de Albornoz (2007) evidence on the impact of the governance structure on earnings management practices across Spanish listed firms, grey directors do not seem to play a significant role in the amount of voluntary information disclosed. These results  suggest  a  greater  importance  of  grey  directors  on  the  quality  of  mandatory financial information, particularly on earnings quality, but not on voluntary disclosure. However, independent directors, representing the interests of the free floating capital, enhance the importance of reducing information asymmetries with alternatives ways of communication with stockholders, particularly, reporting information beyond the one required in the accounting regulation.