The Effect of Voluntary Disclosure on Risk-Taking in Leveraged and Capital-Intensive Firms: The Moderating Role of Managerial Ownership
Keywords:
Voluntary disclosure, Corporate risk taking, Leveraged company, Capital companyAbstract
This study aims to examine the effect of voluntary information disclosure on corporate risk-taking in leveraged and capital-intensive firms, considering the moderating role of managerial ownership. This applied and quantitative study adopts a positivist accounting approach. The sample consists of 141 firms listed on the Tehran Stock Exchange during the period 2012–2021, selected through systematic elimination. Panel data regression models with fixed effects were employed, and firms were classified into leveraged and capital-intensive groups based on the KZ index. Empirical analyses were conducted using EViews software. The results indicate that voluntary disclosure has a negative and significant effect on the risk-taking of leveraged firms, while it has a positive and significant effect on the risk-taking of capital-intensive firms. Moreover, managerial ownership positively moderates the relationship between voluntary disclosure and risk-taking in capital-intensive firms but does not strengthen this relationship in leveraged firms. The findings suggest that the impact of voluntary disclosure on corporate risk-taking is contingent upon firms’ financial structures, and managerial ownership plays an effective moderating role particularly in capital-intensive firms by enhancing transparency and risk management.
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Copyright (c) 2025 Vahid Bahreini (Author); Mohsen Dastgir (Corresponding author); Mohammad َAli moradi (Author)
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