Accounting Information, Disclosure, and the Cost of Capital

In this paper we examine whether and how accounting information about a firm manifests in its cost of capital, despite the forces of diversification. We build a model that is consistent with the Capital Asset Pricing Model and explicitly allows for…

In this paper we examine whether and how accounting information about a firm manifests in its cost of capital, despite the forces of diversification. We build a model that is consistent with the Capital Asset Pricing Model and explicitly allows for…

In this paper we examine whether and how accounting information about a firm manifests in its cost of capital, despite the forces of diversification. We build a model that is consistent with the Capital Asset Pricing Model and explicitly allows for…

1. Financial Economics - General - Financial Crises 2. Financial Economics - General Financial Markets - Asset Pricing; Trading volume; Bond Interest Rates 3. Financial Economics - General Financial Markets - Information and Market Efficiency; Event…

The primary goal of this study is to provide a theoretical model that shows explicit solutions for equilibrium prices and derives the equilibrium required return for the firm's stock price. In other words, this theoretical study provides a direct…

In this discussion I comment on the contribution of two papers toward our understanding of how disclosure affects the cost of capital. Specifically, in the context of these papers, I comment on whether disclosure ameliorates or exacerbates the cost…

This study examines the association between intellectual capital disclosure (ICD) and cost of capital (cost of equity and cost of debt). Although theoretical arguments suggest a negative relationship, prior empirical studies provide mixed findings.…

Whether firms receive cost of capital benefits from greater disclosure is an important and controversial question. This paper reviews the relevant academic research that can provide insights into this question. In conducting this review, my primary…

We investigate the role of information in affecting a firm's cost of capital. We show that differences in the composition of information between public and private information affect the cost of capital, with investors demanding a higher return to…

In 2008, the world has experienced a financial crisis, which emanated from the core of the world's most advanced capital market, and holds back the global real economy in a short time. Financial product especially product innovations, the key thing…