Voluntary Nonfinancial Disclosure and the Cost of Equity Capital: The Initiation of Corporate Social Responsibility Reporting

被引：2170

作者：

Dhaliwal, Dan S. ^{[1
,2
]}

Li, Oliver Zhen ^{[1
]}

Tsang, Albert ^{[3
]}

Yang, Yong George ^{[3
]}

机构：

[1] Univ Arizona, Tucson, AZ 85721 USA

[2] Korea Univ, Seoul, South Korea

[3] Chinese Univ Hong Kong, Hong Kong, Hong Kong, Peoples R China

来源：

ACCOUNTING REVIEW | 2011年 / 86卷 / 01期

关键词：

corporate social responsibility; cost of capital; voluntary disclosure; RESEARCH-AND-DEVELOPMENT; INFORMATION ASYMMETRY; EARNINGS MANAGEMENT; ENVIRONMENTAL PERFORMANCE; INSTITUTIONAL INVESTORS; SHAREHOLDER LITIGATION; FINANCIAL PERFORMANCE; IMPLIED COST; BEHAVIOR; FIRMS;

D O I：

10.2308/accr.00000005

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We examine a potential benefit associated with the initiation of voluntary disclosure of corporate social responsibility (CSR) activities: a reduction in firms' cost of equity capital. We find that firms with a high cost of equity capital in the previous year tend to initiate disclosure of CSR activities in the current year and that initiating firms with superior social responsibility performance enjoy a subsequent reduction in the cost of equity capital. Further, initiating firms with superior social responsibility performance attract dedicated institutional investors and analyst coverage. Moreover, these analysts achieve lower absolute forecast errors and dispersion. Finally, we find that firms exploit the benefit of a lower cost of equity capital associated with the initiation of CSR disclosure. Initiating firms are more likely than non-initiating firms to raise equity capital following the initiations; among firms raising equity capital, initiating firms raise a significantly larger amount than do non-initiating firms.

引用

页码：59 / 100

页数：42