Table of contentsIntroductionDefinition of forward-looking informationTheoretical frameworkAgency theorySignaling theoryLegitimacy theory: Literature review and existing problemsIntroductionForward-looking information (FLD) is the subject of 'an increasing amount of attention in current information related studies around the world. The frequency of FLDs disclosed by organizations is one of the measures of the increasing efficiency of the capital market in reducing information asymmetry. The current role of the FLD in the financial atmosphere is so critical because money markets are too quick to depend solely on historical records. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay Past company disclosures fail to meet various financial development stakeholder disclosure requirements. Business stakeholders often want to know the companies' impending forecasts, in line with what will happen to them in the future. Company management assesses current market trends to respond to stakeholders by describing what companies plan and propose to do. For which FLD has become a matter of great concern for the regulator. FLDs contain information relating to economic and non-economic forecasts of companies that affect future performance in terms of future uncertainty of the company, sudden risk, evaluation and analysis, agency relationship and relevant data. company information. With reference to the IFRS Practices Report, FLD should be included in management commentary to reduce information asymmetry. Companies disclose corporate information in a variety of ways, such as annual reports, conference call press releases, interim reports, and specialist legal communications. With reference to these sources, the annual report was used for this study. Because annual reports are the most preferred source of information, annual reports are considered an important, primary and frequent source of information than all other sources for users in developing and developed countries. Apart from this, the annual reports are audited, timely, accurate and consistent, which is supported by previous studies. The aim of the study is to investigate the nature and extent of FLD in companies listed on the DS30 index and to identify the drivers of forward-looking disclosure. in Bangladesh. A study by Kieso et al. (2009) asserted that FLDs are beneficial to stakeholders in their policy-making process. FLD is considered a dependent variable since shareholders seem to be more attentive to the company's future forecasts than to its past performance. In this study, the hypothesis was developed on the association between FLD and company characteristics that influence disclosure plans monitored by managers in Bangladeshi companies. This study primarily asserts the effect of firm characteristics on FLD published in administration comments. To this end, company characteristics are taken into account through a comprehensive review of relevant information literature, as they have a direct influence on FLD. This analysis contributes to previous studies on disclosure approaches by presenting that firm characteristics influence FLD recorded in management explanations. OfAdditionally, the FLD signals to the market certain probable and improbable events near the company. FLDs provide insights into upcoming strategies and programs that yield strong returns in the market. A study by Aljifri and Hussainey (2007) investigated FLD factors in corporate annual reports. The study focuses on the FLD factors of non-economic companies listed on the NSE. The results clarify that companies with good performance, higher accountability and which pay more attention to external investments include more FLD in their annual reports. Conversely, organizations listed on multiple lists are linked to fewer FLDs. It should be noted that there are a very limited number of FLD.A number of articles have studied the influence of firm characteristics on FLD in developing and developed countries. To the best of the author's knowledge, no study has yet examined this topic in Bangladesh. Additionally, the study contributes to the present literature by classifying FLD as both qualitative and quantitative FLD. Moreover, the judgment on the extent of FLD recorded by Bangladeshi companies will add value to the capital market and contribute to understanding the drivers of FLD in Bangladesh. Definition of Forward-Looking Information Forward-looking information refers to future predictions and current plans that provide information. on the future prospects of the company. There are two types of information published in annual reports, such as “backward-looking information and forward-looking information”. Retrospective information refers to past financial results and related information. Since the economic environment is too dynamic to depend solely on retrospective disclosures, public companies will disclose forward-looking information about their future prospects. Forward-looking information (FLD) is theoretically not informative if it does not change from the previous year, especially after a major change in company performance. The FLD includes economic estimates such as next year's revenue, projected cash flow, probable revenue, etc. includes non-financial information such as risks, organization plans, chance assessments, uncertainties and estimated data that significantly affect actual results compared to expected objectives. The terms “estimate”, “expect”, “forecast”, “predict”, “anticipate” or other similar terminology are used to identify the FLD. In many cases, retrospective information can be considered forward-looking information because it conveys messages for the future. For example, capital expenditures increased by 5% last year, as shown by the CEO's reports in the company's annual reports, this statement absolutely denotes retrospective information. Furthermore, it indicates that capital expenditure is expected to increase in the coming years. to flow. With reference to the ICAEW (2003), FLD involves any disclosure affecting subsequent financial reporting. A study by Bujaki et al. (1999) defined the nature of FLD and identified that this type of information can be qualitative, quantitative, economic or non-economic. The FLD would be important in estimating the level to which the company's performance, liquidity and financial position might vary in the future. Theoretical Framework Forward-looking information disclosed by companies has significant benefits for companies and managers. The three theoretical methods explain these advantages for managers and companies: theoryof agency, legitimacy theory and signaling theory. Previous research has explored many propositions from the agency theory of signaling theory to explain the association of firm characteristics on FLD. To recognize the factors of FLD, these three theories are widely used. Agency Theory Agency theory explains the affiliation between the agent (manager) and the principal (shareholders). It assumes that management and separation of the firm result in agency costs creating information asymmetry. Information asymmetry occurs when agents seize superior information opportunities relative to principals. Agency theory predicts that agency costs will vary depending on firm characteristics, such as leverage, size, and listing status. It also proposes that highly leveraged firms disclose more FLD to reduce agency cost and cost of capital. With reference to this theory, FLD decreases agency costs and reduces information asymmetry. Companies provide a higher level of FLD which allows for a higher assessment of their future performance. Signal Theory To understand the factors of FLD, signal theory is widely used. It is developed to explain labor market behavior regarding voluntary corporate disclosures. The manager provides good news voluntarily to signal good news to avoid bad news and the manager discloses bad news to signal his strengths and abilities to eliminate future losses. According to this theory, firms will disclose FLD to signal the capital market to reduce information asymmetry, increase firm value, and mitigate financial costs. Signaling theory describes that managers provide FLDs in annual reports to signal potential users of the reports. Legitimacy Theory: Another theoretical method used to define forward-looking information is legitimacy theory. Previous studies used legitimacy theory to express FLD in environmental and social reporting. Legitimacy theory ensures that companies signal their legitimacy by providing the FLD each year. Literature Review and Existing Problem The consequence of business characteristics on FLD has been evaluated in many previous studies and the topic has received significant attention in the theoretical literature. However, the experimental indications on the result of firm exact attributes on FLD are not defined and fail to give conclusive results. FLD is considered a subclass of planned corporate disclosures focused on stakeholders and companies that record extreme quality information and contain FLD in annual reports. FLD is demanded and needed by stakeholders apart from book value and recent revenue, which helps them plan their future performance. A number of prior research on FLD has focused on the association between FLD and firm characteristics. Menicucci (2013) examines the association between FLD magnitude and firm characteristics in explanations of Italian corporate management. Their results showed that profitability (ROA) has a substantial negative association with FLD and that leverage and firm size have an insignificant association with the extent of FLD. But another study by Menicucci (2013) examines FLD factors in management's explanation based on the annual report of..