Katalog Online Perpustakaan

Detail Katalog

Jurnal

Accounting Review

Keyword

cost of capital; disclosure; welfare; real effects

Pengarang

Pingyang Gao

Subject

ACCOUNTING

[Abstrak]

One might expect that disclosure quality improves investor welfare by
reducing cost of capital. This study shows that the argument is valid only in limited
circumstances. Based on a production economy with perfect competition among investors,
the analysis demonstrates three points. First, cost of capital could increase
with disclosure quality when new investment is sufficiently elastic. Second, there are
plausible conditions under which disclosure quality reduces the welfare of current and/
or new investors. Finally, cost of capital could move in opposition to the welfare of
either current or new investors as disclosure quality changes.

Periode

Vol 85, Nomor 01, Tahun 2010

[Berkas]

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