Multiple Regression Analysis

Multiple regression compend was used to measure the family consanguinity surrounded by the m unmatchabletary value of justness pileus and the independent and control variables. It was anchor that the personify of equity cap is relatively lower when the index of CSR revealing is higher, reason organism immense CSR gistuation minimizes the ecumenic risk of a company.It was concluded that CSR manifestation in the companys yearly reports reduces the appeal of uppercase by reducing reading imbalance and later on reducing companys risk which benefits both the investors and speculators. According to Baimukhamedova and Luchaninova (2017) who examined the relationship amongst corporate revelation and cost of equity capital on a specimen of 37 largest and most liquid loadeds listed at Kazakhstan Stock flip for spot 2008 to 2014, the instruction used multiple linear regression models.The findings indicated that firms with higher take of fiscal transp arency are ass ociated with pregnantly lower cost of equity capital. The results maken that firm on the Kazakhstan market reduce their cost of equity capital by increasing the level of their unpaid corporate disclosure.Moreover Stanwick (1998) analyse the relationship between corporate disclosure and organizational size of it, financial performance and environmental performance. The objective of the issue was to examine the relationship between genial performance of the organization and the environmental performance of the organization.Data was collected from 1987 to 1992 and descriptive design was used. Corporate reputation index was constructed. The findings were that social performance was thusly dissembleed by the size of the firm, the financial performance of the firm and bar of pollution emissions released by the firms.2.3.3 Corporate Social ResponsibilityVoluntary manifestation and the Cost of Equity CapitalA analyse by Hossain and Hammami (2009) purported that financial result s released are the inception of an organizations budget and performances. The outline involves comparing a firms performance with that of the others firms in the resembling industry and evaluating trends over time.Financial analysis involves the use of simple numeric techniques, an chthonianstanding and appreciation of business strategy and future prospects through and inquiry of financial statements. Financial ratios play a key intention in financial management. The extent to which a firms uses debt financing is what is called financial leverage.Also Botosan and Plumlee (2002) go overd the relationship between cost of capital and annual reports disclosure, timely disclosure (quarterly or other published reports) and investors relations disclosures, they found a negative standstill for the annual report disclosure, their research showed that the cost of capital is positively associate to timely reporting actions which could be attributed to the fact that timely disclosur e subjoin the volatility of the share price by attracting transient investors who trade aggressively on short term earning , however they did not find connectedness between cost of equity financing and investor relations disclosures.In evaluating the relationship between information asymmetry and financing methods (debt and equity financing) of firms listed on the capital of Iran Stock Exchange from year 2003 to 2010, Mahdi, Vahab and Hamin (2015), found that thither no pregnant relationship between information and debt financing though information asymmetry is positively associated with debt financing, however there was a significant positive relationship between information asymmetry and equity financing.The study was make employ secondary entropyset of 61 firms were explored where debt and equity financing methods were adopted where info was extracted from financial statements of take firms and was analyzed in excel and stata. The result of the study showed. In this stu dy used stata and excel.Another study by Mangena, Jing and Tauringana (2016) investigated whether Intellectual capital and financial disclosure jointly affect the firms cost of capital for one hundred twenty-five UK firms listed on the London Stock Exchange (LSE) understanding firms across industries from March 2004 to February 2015, data for measuring disclosure are drawn from annual reports. They used descriptive approach as their study methodological analysis.The study found that IC disclosure is negatively related to to the cost of equity, the relationship between financial disclosure and the cost of equity capital is magnified when combined with the IC disclosures. It was similarly observed that IC and financial disclosure interacts on the effects of the cost of equity capital, the analysis of this interactions demonstrates that the effect of financial disclosure on the cost of equity capital is augmented for firm characterized by medium level of IC disclosure.Used stataIn their study, Francis, Nanda and Olsson, (2002) investigated the relation among leave behindful disclosure, earning timberland and cost of capital. The study was done in Chicago, USA on 677 firms annual reports and 10-K filings in the financial year 2001 using self constructed index of coded items.It was noted that firms with good earning look have more expansive voluntary disclosure than firms with poor earning quality, on unconditional tastes, it was found that more voluntary disclosure is associated with lost cost of capital, however on complementary companionship between disclosure and earning quality it was noted that the disclosure effect on the cost of capital is considerably reduced or disappear completely.Additionally, Cerf (1961) investigated the relationship between voluntary disclosure of information and the level of profitability, size of the firm and its shareholders in the US market. The methodology used was descriptive approach which focused on analyzing the a ssociation between voluntary disclosure of information and the level of profitability on annual reports of 25 different companies listed on the New York Stock Exchange, he found a positive relationship between voluntary disclosure of information and the level of profitability, size of the firm and its shareholders.2.3.4 Board SizeInformation voluntary disclosure and Cost of Equity CapitalIn examining the effect of board independence and voluntary disclosure on the cost of equity capital, Setiany et al. (2007) showed that there is a significant relationship between voluntary disclosure and firms cost of equity capital.The study employed regression analysis on secondary data from companies listed in indonesian Stock Exchange during the period of 2009 to 2012 on a hear of 104 companies in the manufacturing sector. The study concluded that there is no relationship between board independence and cost of equity capital, however the results.However Khemakhem and Naciri (2015) examined the association between board and audit diagnostics and the cost of equity capital in Canadian market. The methodology used descriptive statistics on a sample of 139 firm year observation from proxy circulars, proxy statements and annual reports of Canadian companies that were part of S/P & TSX for the period 2004 to 2006.The study found that the size of audit committee and non- duality of the chairman of the board are positively related to the cost of equity capital, also the study revealed that the independence and board size do not affect the cost of capital for firms in the sample. Fauzi and Locke (2012) investigated the role of board social social structure and the effect of ownership structure on firm performance of New Zealand listed firms.The study employed balanced panel methodology on 79 New Zealand listed firms, it also employed Generalized elongate Model (GLM) to analysis data from annual reports of listed firms for the period of 2007 to 2011.the results of the study sh ow that the board of directors, board committee and managerial ownership have a positive and significant impact on the firm performance.While Hasan et al. (2009) examined the impact of ownership structure and corporate governance on capital structure using a sample of 58 randomly selected non-financial listed companies from Karachi Stock Exchange for the period 2002 to 2005. Data was analyzed using multivariate regression analysis under fixed model approach.The results show that board size is significantly related to capital structure. However, non executive directors on board and CEO/ check duality have no significant relationship with capital structure. Similarly, Jaradat (2015) investigate the effect of board size, board gender, orthogonal director and CEO duality on the capital structure in Jordanian firms.Observation was done on 129 firms for the period 2009 to 2013. Multiple regression analysis was employed to test the association of secondary data collected from yearly annu al reports. The results showed a positive association between board size, board diversity and outside directors and the capital structure, however for CEO duality and capital structure there was no significant relationship.2.4 Conceptual frameworkThis section volition turn to with operationalization of variables of the study, measures of voluntary disclosure and measure of the cost of equity capital. Independent variables pendent Variables VariableIn this study the dependent variable is the cost of equity capital bit the independent variables also referred as voluntary disclosure are the general corporate and strategic disclosure, forward-looking disclosure, social and board disclosure and financial disclosure (Barako, 2007)CHAPTER THREERESEARCH METHODOLOGY3.1 IntroductionThis chapter discusses the methods and procedures to employ to grapple the study. This chapter presents details of the research design, population, sampling and sampling procedures data order of battle method s, data analysis technique data and instruments for data analysis.3.2 research DesignResearch design is the framework the research intends to travel along.It describes the nature and pattern the research intends to follow (Makerere University, 2011). Ogula (2005) describe a research design as a plan, structure and strategy of investigation to obtain answers to research questions and control variance. This study testament adopt descriptive research design as it describe the characteristic and association voluntary disclosure and cost of equity capital of firms listed at NSE.Based on the secondary data to be obtained from annual reports and accounts of companies quoted in the NSE and company website. The choice of descriptive is motivated by the fact that it involves group data, observing and describing the behavior of the data without influencing it in any way (Bryman, 2001).This will be appropriate in the study since it will establish the effect of voluntary disclosure on the co st of equity capital.3.3 Target existenceMugenda and Mugenda (2009) define a population as sum of all the items considered under a study. According to Ngechu (2004) a population is a well defined set of people, services, elements events or households that are being investigated.The target population for this study will consist of 64 firms listed in NSE (CMA, 2017), however consideration will only be on those which have been continuously trading since 2011 without being suspension or delisting3.4 Sample Size and Sampling ProcedureA sample is sub-group of the target population chosen by the researcher to represent other members of the target population (Amin, 2004).Sampling is the process, technique and procedure of choosing a sub-group from a population to participate in the study. Oso and Onen, 2009) stated that there are two main ways of selecting study sample from the target population, hazard and non-probability sampling technique.The study will apply nonrandom sampling techn ique to select companies to be included in the study. Kothari (2004) stated that in purposive sampling technique an element is selected though subjectively defined method where the researcher personal judgments play an important role. An optimum sample is one which fulfils the requirements of efficiency, representativeness, reliability and flexibility.The study will comprise of a sample of 20 firms from NSE 20 share index selected based on a charge market performance in the year 2017 (NSE, 2017).3.5 Instrumentation and Data accrualCreswell (2008) argues prior to research, a researcher ought to develop a data appeal instruments which is meant to measure, observe data under investigation. The study will use manifestation Check Index (DCI) as the principal instrument for data collection of voluntary disclosure information. According to Mugenda and Mugenda (2009),