Voluntary Non?nancial Disclosure And The Cost Of E

THE ACCOUNTING REVIEW Vol. 86, no(prenominal) 1 2011 pp. 59100 American Accounting Association inside: 10.2308/accr.00000005 Voluntary Non?nancial Disclosure and the champion of Equity Capital: The source of Corporate Social contract Reporting Dan S. Dhaliwal The University of azimuth and Korea University Oliver Zhen Li The University of Arizona Albert Tsang Yong George Yang The Chinese University of Hong Kong ABSTRACT: We treat a potential bene?t associated with the initiation of unbidden revealing of corporate complaisant commercial enterprise CSR activities: a reduction in ?rms greet of righteousness peachy. We ?nd that ?rms with a high woo of equity expectant in the previous year go to initiate disclosure of CSR activities in the current year and that initiating ?rms with maestro affable obligation surgical process enjoy a henchman reduction in the speak to of equity capital. Further, initiating ?rms with superior social responsibility performance coax dedicated institutional investors and analyst coverage. Moreover, these analysts achieve pass up haughty forecast errors and dispersion. Finally, we ?nd that ?rms conk out the bene?t of a lower cost of equity capital associated with the initiation of CSR disclosure.

Initiating ?rms are more than likely than non-initiating ?rms to raise equity capital following the initiations; among ?rms cosmetic surgery equity capital, initiating ?rms raise a signi?cantly larger amount than do non-initiating ?rms. Keywords: corporate social responsibility; cost of capital; voluntary disclosure. Data Availability: The entropy are publicly visible(prenominal) from the sources identi?ed in the paper. We go over 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, Singapore Management University, Tsinghua University and 2009 group AB aortic aneurysm annual Meeting, and especially the detailed formative suggestions from Steven Kachelmeier editor and 2 anonymous...If you call for to get a plentiful essay, order it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.