Transparency, financial performance, and corporate governance remain to be important considerations with respect to voluntary disclosure by industrial organizations. The paper looks into what motivates companies to voluntarily disclose information, the advantages and disadvantages of this process as well as some possible future trends. It achieves this by reviewing some of the well-known theories in literature that include the Agency Theory, Signaling Theory, Stakeholder Theory, as well as Legitimacy Theory. From these perspectives, it would be argued that firms can make good use of voluntary information to bridge any information gaps between them and their users, who may be capital providers or officials; this will then help increase investment and meet legal requirements on reporting. Research findings indicate that voluntary disclosures have a positive impact on financial performance, enhance financial reports, promote greater involvement in corporate social responsibility and increase the overall reputation and value of companies. Nevertheless, there are a number of obstacles such as loss of market share, growth in expenses related to reporting, and absence of uniformity. Further studies need to examine how new technologies, laws on environment, etc., affect and will continue influencing such practices
