Voluntary disclosure and the cost of capital
نویسندگان
چکیده
منابع مشابه
Information Disclosure, Growth, and the Cost of Capital
This paper studies how information disclosure affects the cost of equity capital (i.e., risk premium) and investors welfare in a dynamic setting with overlapping generations of investors. Our analysis demonstrates that a firm’s cost of capital decreases (increases) in the precision of public disclosure if the firm’s growth rate is below (above) a certain threshold. The threshold growth rate is ...
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The purpose of this study is to investigate the factors affecting the evaluation of the quality of voluntary disclosure, given that the factors used in internal research due to having an external source and focusing on the number of disclosures may not be an appropriate criterion for measuring the quality of information disclosure, so, it is necessary to provide new influencing factors on the e...
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Regulation Fair Disclosure (Reg FD) prohibits selective disclosure of material information to a subset of market participants such as analysts and institutional investors without simultaneously disclosing the same information to the investing public. We examine the effect of Reg FD on the cost of equity capital. If Reg FD curtails selective disclosure without a significant adverse effect on the...
متن کاملDisclosure Quality, Cost of Capital, and Investors’ Welfare∗
It is widely believed that disclosure quality improves investors’ welfare by reducing cost of capital in a competitive market. This paper examines this conventional wisdom by studying a production economy in which disclosure influences a firm’s investment decisions. I demonstrate three points. First, cost of capital could increase with disclosure quality when new investment is sufficiently elas...
متن کاملMandatory Disclosure Quality, Inside Ownership, and Cost of Capital
Abstract This paper examines whether and how inside ownership mediates the relation between disclosure quality and the cost of capital. Both ownership and more transparent reporting have the potential to align incentives between managers and investors thereby reducing systematic risk. Employing a large global sample across 35 countries over the 1990 to 2004 period, we show that countrylevel dis...
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ژورنال
عنوان ژورنال: Australian Journal of Management
سال: 2014
ISSN: 0312-8962,1327-2020
DOI: 10.1177/0312896214529441