This paper examines the effects of option listing on voluntary disclosure and its implications. We observe a significant rise in voluntary disclosure by firms that are newly listed on the option market. The increase is particularly pronounced for firms facing higher information asymmetry. We find a significant increase in investor attention and trading activity following option listing for firms with a greater increase in voluntary disclosure. Moreover, the cost of equity significantly drops following an option listing, especially for firms that voluntarily disclose more information. Newly listed firms facing higher information asymmetry are also more likely to issue equities rather than debt. However, similar findings are not observed for mandatory disclosure. Overall, the findings are consistent with the proposition that while option listings enhance the information environment, newly listed firms voluntarily disclose more information to capitalize on a lower cost of equity.