The Effect of Corporate Disclosure on the Market Value of the Firm

Disclosure of information helps to reduce information asymmetry and allows to ensure effective control over the company's activities, since the provision of complete and reliable information allows management to objectively assess the position of the firm and choose the direction of its further development. It is known that information transparency provides the competitive advantages of the companies themselves. The paper presents a survey of research on information transparency, its impact on various aspects of companies' activities, and specifies the disclosure of corporate information by Russian companies. Also, the paper presents the results of an empirical study on the analysis of the relationship between the disclosure level and the market value of Russian companies. In the course of regression analysis of panel data for 2004-2007, the following result was obtained: the level of disclosure of information positively affects the market value of companies.