The Effect of Voluntary Disclosure on Stock Liquidity: Evidence from Jordan

This study aims to examine the effect of voluntary disclosure on stock liquidity. The study sample consists of 23 insurance companies listed on the (ASE), over 10 years (2010–2019), yielding 230 firm-year observations. To test the study hypotheses, the quantitative research design was used, and cross-sectional analysis was performed using Ordinary least square (OLS) regression. Voluntary disclosure was measured using a self-constructed voluntary disclosure index, while stock liquidity was measured using two variables; share turnover ratio and daily bid-ask spread. The findings revealed that voluntary disclosure has a significant negative effect on share turnover ratio, and thus on stock liquidity. Furthermore, voluntary disclosure has no significant effect on stock liquidity as measured by the Daily bid-ask spread.