The effect of non-financial risk information on the evaluation of implied cost of capitals

Preprint, External research report OPEN
Norio Kitagawa; Hyonok Kim; Masatoshi Goto;
(2011)
  • Publisher: 神戸大学大学院経営学研究科
  • Journal: 神戸大学経営学研究科 Discussion paper,volume 2011・07
  • Subject: implied cost of capital; risk factors; non-financial risk information

The purpose of this paper is to examine the effect of voluntary disclosure of `business risk' information (hereafter referred to as `risk information' ), which is a significant determinant of the information environment, on estimating the cost of capital. Recently, some... View more
  • References (10)

    Ashbaugh-Skaif, H., D.W. Collins, R. LaFond. (2004). Corporate Governance and the Cost of Equity Capital. Working Paper, University of Wisconsin, 2004.

    Ashbaugh-Skaife, H., D. Collins, W. Kinney Jr., R. Lafond. (2009). The Effect of SOX Internal Control Deficiencies on Firm Risk and Cost of Equity. Journal of Accounting Research, 47(1), 1-43.

    Barth, M., J. Elliot, and M. Finn. (1999). Market Rewards Associated with Patterns of Increasing Earnings. Journal of Accounting Research, 37(2), 387-413.

    Beneish, M.D., M.B. Billings, and L.D. Hodder. (2008). Internal Control Weaknesses and Information Uncertainty. The Accounting Review, 83(3), 665-703.

    Berk, J., R. Green, and V. Naik. (1999). Optimal Investment, Growth Options, and Security Returns. The Journal of Finance, 54(5), 1553-1607.

    Botosan, C.A. (1997). Disclosure Level and the Cost of Equity Capital. The Accounting Review, 72(3), 323-349.

    Botosan, C.A., and M.A. Plumlee. (2002). A Re-Examination of Disclosure Level and the Expected Cost of Equity Capital. Journal of Accounting Research, 40(1), 21-40.

    Botosan, C.A., and M.A. Plumlee. (2005). Assessing Alternative Proxies for the Expected Risk Premium. The Accounting Review, 80(1), 21-53.

    Brennan, N. Jegadeesh, M. J. and B. Swaminathan. (1993). Investment Analysis and the Adjustment of Stock Prices to Common Information. Review of Financial Studies, 6(4), 799-824.

    Cheng, C.S.A., D. Collins, and H.H. Huang. (2006). Shareholder Rights, Financial Disclosure and the Cost of Equity Capital. Review of Quantitative Finance and Accounting, 27(2), 175-204.

  • Metrics
    No metrics available
Share - Bookmark