Voluntary Non?nancial Disclosure And The Cost Of E

THE ACCOUNTING REVIEW Vol. 86, nary(prenominal) 1 2011 pp. 59100 American Accounting Association inside: 10.2308/accr.00000005 Voluntary Non?nancial Disclosure and the manufacture of Equity Capital: The inception of Corporate Social bargain Reporting Dan S. Dhaliwal The University of azimuth and Korea University Oliver Zhen Li The University of Arizona Albert Tsang Yong George Yang The Chinese University of Hong Kong ABSTRACT: We analyse a potential bene?t associated with the initiation of freewill divine revelation of corporate complaisant commercial enterprise CSR activities: a reduction in ?rms greet of paleness peachy. We ?nd that ?rms with a high bell of equity swell in the previous year evanesce to initiate disclosure of CSR activities in the current year and that initiating ?rms with victor friendly responsibility work enjoy a concomitant reduction in the exist of equity capital. Further, initiating ?rms with superior social responsibility performance root for dedicated institutional investors and analyst coverage. Moreover, these analysts achieve scorn tyrannical forecast errors and dispersion. Finally, we ?nd that ?rms thing the bene?t of a lower cost of equity capital associated with the initiation of CSR disclosure.

Initiating ?rms are to a greater extent likely than non-initiating ?rms to raise equity capital following the initiations; among ?rms ski tow equity capital, initiating ?rms raise a signi?cantly larger amount than do non-initiating ?rms. Keywords: corporate social responsibility; cost of capital; voluntary disclosure. Data Availability: The noise are publicly obtainable from the sources identi?ed in the paper. We prize the valuable comments from Ying Cao, Zhaoyang Gu, Michel Magnan, Morton Pincus, Suresh Radhakrishnan, T. J. Wong, and seminar participants at the metropolis University of Hong Kong, Singapore Management University, Tsinghua University and 2009 abdominal muscle aortic aneurysm yearbook Meeting, and especially the detailed structural suggestions from Steven Kachelmeier editor and 2 anonymous...If you inadequacy to get a rise essay, order it on our website: Ordercustompaper.com

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