Market Efficiency, the Cost of Capital, and Information Disclosure Quality

2020 ◽  
Author(s):  
Xiangguo Zhang
Keyword(s):  
Market Efficiency ◽  
Information Disclosure ◽  
Cost Of Capital ◽  
Disclosure Quality ◽  
The Cost

Does environmental information disclosure affect the performance of energy-intensive firms’ borrowing ability? Evidence from China

2018 ◽  
Vol 29 (5) ◽  
pp. 685-705 ◽  
Author(s):  
Haiqing Hu ◽  
Chun-Ping Chang ◽  
Minyi Dong ◽  
Wei-Na Meng ◽  
Yu Hao
Keyword(s):  
Capital Market ◽  
Information Disclosure ◽  
Cost Of Capital ◽  
Environmental Information ◽  
Influential Factors ◽  
Environmental Information Disclosure ◽  
Loan Size ◽  
The Cost ◽  
The Impact ◽  
Positive Effect

In recent years, a growing strand of China’s listed companies chose to disclose environmental information, which may potentially affect their financial performance then further influence its performance of financial supports. To quantitatively investigate the impact of enterprise’s environmental information disclosure on the ability of firms’ borrowing in China, this paper divides the measurements of information disclosure into five categories and evaluates firms’ performance in capital market through its availability of a loan and the cost of capital. In total, 97 listed energy-intensive companies in China are selected and their data covering the period of 2000–2014 are utilized for empirical study. The empirical results indicate that enterprise’s environmental information disclosure appears to have a significantly positive effect on the loan size available, while the cost of capital is less sensitive to environmental information disclosure. The empirical evidence also suggests that, among the five aspects of information disclosure measurements, the future plan and monetary information are the most influential factors of the cost of capital.

Disclosure Effects in the Laboratory: Liquidity, Depth, and the Cost of Capital

2000 ◽  
Vol 75 (1) ◽  
pp. 13-41 ◽  
Author(s):  
Robert J. Bloomfield ◽  
T. Jeffrey Wilks
Keyword(s):  
Financial Market ◽  
Cost Of Capital ◽  
Broad Class ◽  
Empirical Studies ◽  
Potential Importance ◽  
Archival Studies ◽  
Disclosure Quality ◽  
Demand Shocks ◽  
Transaction Prices ◽  
The Cost

Greater disclosure quality leads to higher prices and greater liquidity in a laboratory financial market, and these effects are stronger when investors face the risk of unpredictable demand shocks. These results are consistent with a broad class of theoretical and empirical studies. Disclosure has larger effects on prices and liquidity at greater market depths. We conclude that archival studies looking only at quoted transaction prices and spreads (which typically pertain to small transactions) may underestimate the potential importance of disclosure on larger transactions that occur at greater market depths.

scholarly journals Accounting Information, Disclosure, and the Cost of Capital

2007 ◽  
Vol 45 (2) ◽  
pp. 385-420 ◽  
Author(s):  
RICHARD LAMBERT ◽  
CHRISTIAN LEUZ ◽  
ROBERT E. VERRECCHIA
Keyword(s):  
Information Disclosure ◽  
Cost Of Capital ◽  
Accounting Information ◽  
The Cost
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