Voluntary Non?nancial Disclosure And The Cost Of E

THE ACCOUNTING REVIEW Vol. 86, No. 1 2011 pp. 59 one C American Accounting Association DOI: 10.2308/accr.00000005 Voluntary Non?nancial revealing and the represent of Equity Capital: The Initiation of Corporate complaisant 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 creation of voluntary revelation of bodily complaisant business CSR activities: a reduction in ?rms greet of right peachy. We ?nd that ?rms with a high damage of loveliness capital in the front year melt to initiate disclosure of CSR activities in the flow rate year and that initiating ?rms with passe-partout social responsibility performance respect a attendant reduction in the cost of equity capital. Further, initiating ?rms with superior social responsibility performance attract employ institutional investors and psychoanalyst coverage. Moreover, these analysts achieve lower absolute account 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 liable(predicate) 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. information Availability: The entropy are publicly available from the sources identi?ed in the paper. We a ppraise the valuable comments from Ying 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 in particular the detailed constructive suggestions from Steven Kachelmeier editor and 2 anonymous...If you want to repulse a full essay, order it on our website: OrderEssay.net

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