The Effect of Voluntary Disclosure on Stock Market Returns of Companies Listed at the Nairobi Securities Exchange
Mirie Mwangi, Jacqueline Kendi Mwiti

Abstract
Voluntary disclosure is aimed at providing a clear view to stakeholders about the business’s long-term sustainability and reducing information asymmetry and agency conflicts between managers and investors. The objective of this study was to determine the effects of voluntary disclosures on stock market returns of companies listed at the Nairobi Securities Exchange. The study sampled twenty firms for the period 2009 to 2013. It employed multiple linear regression of market performance of the firms in the five year period against voluntary disclosure, exchange rate, interest rate and rate of inflation.The results were that each of the factors was positively related to market performance for firms listed at the NSE. The study recommends companies to have voluntary disclosure above the statutory requirements set by the regulatory agencies as it can result in increased stock returns.

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