Social disclosure, financial disclosure and the cost of equity capital

被引:410
作者
Richardson, AJ [1 ]
Welker, M [1 ]
机构
[1] Queens Univ, Sch Business, Kingston, ON K7L 3N6, Canada
关键词
D O I
10.1016/S0361-3682(01)00025-3
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We test the relation between financial and social disclosure and the cost of equity capital for a sample of Canadian firms with year-ends in 1990, 1991 and 1992. We find that, consistent with prior research, the quantity and quality of financial disclosure is negatively related to the cost of equity capital for firms with low analyst following. Contrary to expectations, there is a significant positive relation between social disclosures and the cost of equity capital. This positive relationship is mitigated among firms with better financial performance. We consider some biases in social disclosures that may explain this result. We also note that social disclosures may benefit the firm through its effect on organizational stakeholders other than equity investors. (C) 2001 Published by Elsevier Science Ltd.
引用
收藏
页码:597 / 616
页数:20
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