Determinants of voluntary COVID-19 disclosure post-pandemic: Evidence from Jordan

Abstract

This paper examines the relationship between the extent of COVID-19 disclosure and various firm characteristics within annual reports of industrial companies listed on the Amman Stock Exchange in Jordan. The authors employed a disclosure index to assess corporate COVID-19 disclosures within the narrative sections of annual reports. Ordinary least squares (OLS) regression was employed to investigate the factors influencing the voluntary COVID-19 disclosure among industrial companies. Regression analysis results show a positive relationship between COVID-19 disclosure and factors such as leverage, firm performance and firm age. The significance of uncertainty related to COVID-19 disclosure in annual reports is expected to persist in the coming years. Policymakers should encourage voluntary disclosure as a tool to improve corporate transparency, investor trust, and crisis awareness. The findings provide valuable guidance for firm management on the importance of maintaining transparency in disclosures among significant challenges and uncertainty. These findings are relevant for governments, shareholders, policymakers, suppliers, and creditors. The findings provide constructive insights for corporate managers and the ASE in enhancing corporate disclosure and transparency during future financial crises.