The Impact of Corporate Voluntary Disclosure and Financial Leverage on The Relationship Between Corporate Governance and Shareholders' Value: Proposed Framework

Abstract

Objective: The purpose of this study is to propose a conceptual framework that investigates the impact of corporate governance practices on shareholder value.   Theoretical framework: The proposed framework of this study is established based on agency theory and stewardship theory to establish the interrelationships among the models in this study.   Method: In line with previous research, corporate governance practices have been shown to improve information disclosure through voluntary disclosure.   Result and conclusion: This leads to maximizing the shareholders' value, as discussed in this paper. Financial leverage as a moderator factor is found to be a potentially significant factor in strengthening the effect of voluntary disclosure of information on the shareholders' value.   Conclusion: Corporate governance practices play a pivotal role in enhancing shareholder value, especially when considering the influence of voluntary disclosure and the moderating effect of financial leverage.   Originality/Value: The unique contribution of this research lies in its comprehensive analysis of the relationships between corporate governance practices, voluntary information disclosure, financial leverage, and their combined influence on shareholder value.