Voluntary Non?nancial Disclosure And The Cost Of E

THE ACCOUNTING REVIEW Vol. 86, zero(prenominal) 1 2011 pp. 59100 American Accounting Association inside: 10.2308/accr.00000005 Voluntary Non?nancial Disclosure and the equal of Equity Capital: The inauguration of Corporate Social pact Reporting Dan S. Dhaliwal The University of genus Arizona and Korea University Oliver Zhen Li The University of Arizona Albert Tsang Yong George Yang The Chinese University of Hong Kong ABSTRACT: We take apart a potential bene?t associated with the initiation of uncoerced revelation of corporate complaisant argument CSR activities: a reduction in ?rms greet of lawfulness peachy. We ?nd that ?rms with a high comprise of equity ceiling in the previous year blow over to initiate disclosure of CSR activities in the current year and that initiating ?rms with sea captain sociable state capital punishment enjoy a musical accompaniment reduction in the comprise of equity capital. Further, initiating ?rms with superior social responsibility performance deplumate dedicated institutional investors and analyst coverage. Moreover, these analysts achieve turn down imperious forecast errors and dispersion. Finally, we ?nd that ?rms affair the bene?t of a lower cost of equity capital associated with the initiation of CSR disclosure.

Initiating ?rms are more(prenominal) likely than non-initiating ?rms to raise equity capital following the initiations; among ?rms ski tow 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 sulphur are publicly lendable from the sources identi?ed in the paper. We mensurate the valuable comments from Ying Cao, Zhaoyang Gu, Michel Magnan, Morton Pincus, Suresh Radhakrishnan, T. J. Wong, and seminar participants at the metropolis University of Hong Kong, Singapore Management University, Tsinghua University and 2009 ab aortic aneurysm one-year Meeting, and especially the detailed inferential suggestions from Steven Kachelmeier editor and 2 anonymous...If you fatality to get a beneficial essay, order it on our website: Ordercustompaper.com

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