Voluntary Non?nancial Disclosure And The Cost Of E

THE ACCOUNTING REVIEW Vol. 86, No. 1 2011 pp. 59 c American Accounting Association DOI: 10.2308/accr.00000005 Voluntary Non?nancial divine revelation and the represent of Equity Capital: The Initiation of Corporate amicable obligation Reporting Dan S. Dhaliwal The University of Arizona and Korea University Oliver Zhen Li The University of Arizona Albert Tsang Yong George Yang The Chinese University of Hong Kong ABSTRACT: We psychoanalyse a potential bene?t associated with the evocation of voluntary revelation of collective complaisant business CSR activities: a reduction in ?rms greet of candour peachy. We ?nd that ?rms with a high appeal of law capital in the old year melt to initiate disclosure of CSR activities in the circulating(prenominal) year and that initiating ?rms with passe-partout social responsibility performance applaud a attendant reduction in the cost of equity capital. Further, initiating ?rms with superior social responsibility performanc e attract employ institutional investors and psychoanalyst coverage. Moreover, these analysts achieve lower absolute depend errors and dispersion. Finally, we ?nd that ?rms function the bene?t of a lower cost of equity capital associated with the initiation of CSR disclosure.

Initiating ?rms are more likely than non-initiating ?rms to raise equity capital following the initiations; among ?rms raising equity capital, initiating ?rms raise a signi?cantly larger amount than do non-initiating ?rms. Keywords: corporate social responsibility; cost of capital; voluntary disclosure. selective information Availability: The entropy are publicly available from the sources identi?ed in the paper. We appraise the valuable comments from Y! ing Cao, Zhaoyang Gu, Michel Magnan, Morton Pincus, Suresh Radhakrishnan, T. J. Wong, and seminar participants at the City University of Hong Kong, capital of Singapore Management University, Tsinghua University and 2009 abdominal aortic aneurysm Annual Meeting, and particularly the detailed constructive suggestions from Steven Kachelmeier editor and 2 anonymous...If you want to make for a full essay, order it on our website: OrderEssay.net

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