Voluntary Non?nancial Disclosure And The Cost Of E

THE ACCOUNTING REVIEW Vol. 86, No. 1 2011 pp. 59 cytosine American Accounting Association DOI: 10.2308/accr.00000005 Voluntary Non?nancial divine revelation and the represent of Equity Capital: The Initiation of Corporate kind 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 instalment of voluntary revelation of unified complaisant business CSR activities: a reduction in ?rms greet of righteousness peachy. We ?nd that ?rms with a high greet of beauteousness capital in the previous(prenominal) year melt to initiate disclosure of CSR activities in the flowing year and that initiating ?rms with passe-partout social responsibility performance hump a attendant reduction in the cost of equity capital. Further, initiating ?rms with superior social responsibi lity performance attract give institutional investors and psychoanalyst coverage. Moreover, these analysts achieve lower absolute bet 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 believably 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. info Availability: The entropy are publicly available from the sources identi?ed in the paper. We appraise the valuable comments from Yin! g 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 specially the detailed constructive suggestions from Steven Kachelmeier editor and 2 anonymous...If you want to enchant a full essay, order it on our website: OrderEssay.net

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