An Investigation of the Causal Effect of Voluntary Disclosure Quality on Cost of Equity Capital is popular PDF and ePub book, written by Andreas Zweifel in 2017-03-07, it is a fantastic choice for those who relish reading online the Business & Economics genre. Let's immerse ourselves in this engaging Business & Economics book by exploring the summary and details provided below. Remember, An Investigation of the Causal Effect of Voluntary Disclosure Quality on Cost of Equity Capital can be Read Online from any device for your convenience.
An Investigation of the Causal Effect of Voluntary Disclosure Quality on Cost of Equity Capital Book PDF Summary
Master's Thesis from the year 2012 in the subject Economics - Finance, grade: 5.5, University of Zurich (Department of Banking and Finance), course: Economics and Finance, language: English, abstract: Does voluntary disclosure quality pay off? And if so, what are the driving forces behind the relationship of voluntary disclosure quality and the cost of equity capital? This study addresses these and other questions in the context of analyzing the determinants of the cost of equity capital for Swiss firms. The relation between voluntary disclosure quality and cost of equity capital is widely known to be affected by self-selection. Potential endogeneity bias is controlled for by adopting a two-stage least squares approach in a cross-sectional setting. Voluntary disclosure quality is proxied by the annual reports disclosure scores for a well-diversified sample of Swiss firms as developed by the Department of Banking and Finance of the University of Zurich. Further, an ex-ante cost of capital metric derived from the dividend discount model is used in this study. Empirical evidence shows that the association between voluntary disclosure quality and cost of equity differs with a firm's stock listing history. While the relation is predicted to be negative for firms at the IPO stage, it is likely reversed at some point in a firm's stock listing history. These results suggest that analysts' information processing activities negatively moderate the impact of voluntary disclosure quality on firm value. Importantly, the predicted interaction between voluntary disclosure quality and stock listing history remains significant when adjusting for endogeneity.
Detail Book of An Investigation of the Causal Effect of Voluntary Disclosure Quality on Cost of Equity Capital PDF
- Author : Andreas Zweifel
- Release : 07 March 2017
- Publisher : GRIN Verlag
- ISBN : 9783668410626
- Genre : Business & Economics
- Total Page : 100 pages
- Language : English
- PDF File Size : 15,6 Mb
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