Download or read book Investor relation internet disclosure and the cost of equity capital an empirical analysis written by and published by . This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation contributes to the academic literature by examining two issues in relation to corporate Internet disclosure. First, we make a detailed content analysis of the investor relation section on the Web sites of US companies to gain insight into the type and amount of information provided to investors on corporate Web sites and to establish a measure of the Internet disclosure level. We find that companies are not exploiting the full potential of this disclosure medium. In a second study, we examine the relation between the cost of equity capital and the disclosure level of information in the investor relation section of corporate Web sites. We regress the cost of equity capital, obtained from a comprehensive discounted cash flow model, on the disclosure measure from the content analysis study to examine the relationship between these two variables. For a cross-sectional sample of 141 non-financial US companies, we find a negative and highly significant association between the cost of equity capital and level of Internet investor relation disclosure. The results remain significant after controlling for potentially influential variables such as different risk characteristics and firm size. The results indicate thus that Internet disclosure is useful to investors.
Download or read book Investor Relation Internet Disclosure and the Cost of Equity Capital written by Ewa A. Froidevaux and published by . This book was released on 2004 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Impact of Intellectual Capital Disclosure on Cost of Equity Capital written by Mohamed Ali Boujelbene and published by . This book was released on 2013 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this paper is to examine empirically the impact of intellectual capital disclosure (IC) on cost of Equity capital. The empirical research is based on companies listed in the French SBF 120 stock market index. The findings confirm our hypotheses that stipulate the existence of a significant and negative association between intellectual capital disclosure with its two components (human capital, structural) and the cost of equity. However, the negative impact of the relational capital disclosure is not validated. The results in this paper are of considerable importance to both policy makers and firms. In fact, the understanding of the impact of Intellectual capital disclosure on cost of equity capital helps policy makers in the evaluation of the costs and benefits of disclosure. Moreover, with regard to managers of firms, the results show the benefit of enhanced IC disclosure regarding the reduction in their cost of capital. This study is one of the very first to provide empirical evidence of the association between Cost of equity capital and the level of disclosure in the three individual intellectual capital categories (human; structural and relational capital).
Download or read book ECIIC 2019 10th European Conference on Intangibles and Intellectual Capital written by Prof. Massimo Sargiacomo and published by Academic Conferences and publishing limited. This book was released on 2019-05-23 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Equity Valuation and Negative Earnings written by Ana Paula Matias Gama and published by Springer. This book was released on 2016-12-20 with total page 173 pages. Available in PDF, EPUB and Kindle. Book excerpt: Building upon Feltham and Ohlson models, this book examines positive loss-earnings within the context of the dot.com bubble during the boom years of the late 1990s bull market. The strong demand for equity financing captured the imagination of investors from Europe and U.S. like never before. With a focus on U.S. Internet companies, the book explores both the birth and the death of the new economy, and how negative earnings and losses still garnered large investments and successful IPOs (Initial Public Offerings). As Internet based ventures and the digital economy keep attracting large amounts of equity financing, this book explains that there is something unique in the valuation and pricing of tech companies. The book was written for corporate financiers, capital market professionals, and academics to further their understanding of equity valuation and the effects of equity trading.
Download or read book The impact of improved financial disclosure on the cost of equity capital written by Dan S. Dhaliwal and published by . This book was released on 1978 with total page 118 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effect of Accounting Disclosure on Cost of Equity Capital in Emerging Capital Markets written by Sameh Othman Mohamed Yassen and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The study analysed the relationship between accounting disclosure, both mandatory and voluntary, on the cost of equity capital for listed companies in the Egyptian exchange. The focus is on analysing this relationship in one of the emerging capital markets where there is a paucity of research analysing this issue. To achieve this aim, two self-constructed disclosure indices for mandatory and voluntary disclosure were used to measure the level of disclosure in Egypt. The cost of equity capital was measured based on three methods identified in the literature, namely the capital asset pricing model (CAPM), the Fama-French three factor model, and the industrial earnings-price ratio. To analyse the effect of accounting disclosure on the cost of equity capital, each of the cost of equity measurement methods was regressed on mandatory and voluntary disclosure scores, alternatively, and some controls that are identified in the literature to affect the association between the two variables. The control variables used were firm size, leverage, book-to-market ratio, profitability, liquidity, and sales growth. As a robustness check, a composite measure of the three cost of equity methods was used and the effect of the control variables was excluded from the analyses. To control for the existent endogeneity in the explanatory variable, accounting disclosure, a dynamic panel system of the generalized method of moments (SGMM) was used in the regression analyses. Using a sample of 657 firm year observations for 73 firms across 11 industries for nine years from 2008 to 2016, the study found a significant negative association between voluntary disclosure level and cost of equity capital, however, the study found a significant positive association between mandatory disclosure level and cost of equity capital. The results of the study could benefit various parties including researchers, regulators, and investors. It provides a motivation to researchers interested in analysing this association in Egypt and other emerging markets besides providing these researchers with a suitable data set to measure disclosure and cost of equity capital in Egypt. Regulators could benefit from the results of the study through identifying the shortcomings that need to be overcome to improve the disclosure environment in Egypt. Investors could use the results of the study as a data source in making investment decisions in Egypt.
Download or read book Proceedings of the 10th International Conference on Intellectual Capital knowledge Management and Organisational Learning written by Dr Annie Green and published by Academic Conferences Limited. This book was released on 2013-01-09 with total page 702 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Does Graph Disclosure Bias Reduce the Cost of Equity Capital written by Flora Muiño and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Firms widely use graphs in their financial reports. In this respect, prior research demonstrates that companies use graphs to provide a favorable outlook of performance, suggesting that they try to manage the impression created in users' perceptions. This study tests whether by means of distorted graphs managers are able to influence users' decisions in the capital market. By focusing on the effects of distorted graphs on the cost of equity capital, we provide preliminary evidence on one of the possible economic consequences of graph usage. The results of this investigation suggest that graph disclosure bias has a significant, but temporary, effect on the cost of equity. Moreover, our results highlight the important role played by the overall level of disclosure as a conditioning factor in the relationship between graphs and the cost of equity. Consequently, the results of the current study enhance our understanding of the complex interactions that take place in the stock market between information, information intermediaries and investors.
Download or read book The Effect of Earnings Quality on the Association Between Information Precision and the Cost of Equity Capital written by Jia Zhu and published by Open Dissertation Press. This book was released on 2017-01-27 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation, "The Effect of Earnings Quality on the Association Between Information Precision and the Cost of Equity Capital" by Jia, Zhu, 朱佳, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: Abstract of thesis entitled The Effect of Earnings Quality on the Association between Information Precision and the Cost of Equity Capital Submitted by Zhu Jia For the Degree of Master of Philosophy At the University of Hong Kong In March 2007 Abstract A growing volume of literature on the association between information and the cost of equity capital has investigated various firm-specific factors that may affect the relationship between public disclosure and the cost of equity capital. My empirical study adds to this literature by showing that the earnings quality of firms might also play a determining role in the association between public information precision and the cost of equity capital. The earnings quality indicator in this study is used to proxy the value-relevance of public disclosure and is included as a control variable in the regression of the cost of equity capital estimates on the information precision. I document that public information is in general negatively associated with the cost of equity capital. However, when the earnings quality of firms is deteriorating to certain extent, the cost of equity capital goes up in response to more precise public information. Moreover, I find that the public and private information precisions act as complements. On the other hand, I do not find an unambiguous association between private information precision and the cost of equity capital, nor any reliable evidence about the direct impact of the earnings quality indicator on the cost of equity capital. (No. of words: 201) DOI: 10.5353/th_b3879143 Subjects: Corporate profits Disclosure of information Capital costs
Download or read book Equity Markets Valuation and Analysis written by H. Kent Baker and published by John Wiley & Sons. This book was released on 2020-09-01 with total page 448 pages. Available in PDF, EPUB and Kindle. Book excerpt: Sharpen your understanding of the financial markets with this incisive volume Equity Markets, Valuation, and Analysis brings together many of the leading practitioner and academic voices in finance to produce a comprehensive and empirical examination of equity markets. Masterfully written and edited by experts in the field, Equity Markets, Valuation, and Analysis introduces the basic concepts and applications that govern the area before moving on to increasingly intricate treatments of sub-fields and market trends. The book includes in-depth coverage of subjects including: · The latest trends and research from across the globe · The controversial issues facing the field of valuation and the future outlook for the field · Empirical evidence and research on equity markets · How investment professionals analyze and manage equity portfolios This book balances its comprehensive discussion of the empirical foundations of equity markets with the perspectives of financial experts. It is ideal for professional investors, financial analysts, and undergraduate and graduate students in finance.
Download or read book Value at Risk Disclosure Cost of Equity Capital and Investor Reaction written by Hanmei Chen and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a sample of 24 US banks from 1997 to 2004, we examine the relationship between value-at-risk (VAR) for trading activities and banks' cost of equity capital. We show that the implied cost of equity capital and the bid-ask spread, both proxying for the cost of equity capital, is positively related to VAR, as well as a quality indicator based on bank technical sophistication. The results are consistent with the claims that VAR effectively captures bank trading risk, and that investors care about banks' risk-taking activities. We next examine whether investors fully understand the implication of VAR to future volatility in trading revenues and utilize it in the pricing process. Our test cannot reject the null that bank stock price has fully incorporated the predictability of VAR.
Download or read book Expectations Management Corrections and the Cost of Equity Capital written by Lisa A. Hinson and published by . This book was released on 2018 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: Extant research on the relation between voluntary disclosure and the cost of equity capital assumes that management discloses information to credibly adjust investor expectations and, thus, lower cost of capital. My study is motivated by the low likelihood that all management forecasts yield the credible information underlying the beneficial effect on cost of equity capital. I survey the literature on management forecast incentives and find that expectations management and corrections are major management forecast motivations. I expect these motivations to be less effective in conveying credible and truthful information and reducing information uncertainty. As expected, relative to firms with transparency-motivated management forecast policies, firms with policies containing higher percentages of forecasts motivated by expectations management and corrections have higher cost of equity capital. Relative to firms that do not forecast, firms with transparency-motivated policies have lower cost of capital; firms with corrections-motivated policies also have lower cost of capital but to a lesser extent than transparency-motivated firms; and firms with expectations-management-motivated policies do not have lower cost of capital. Thus, evidence suggests that underlying forecast motivations impact the management earnings forecast policy-cost of equity capital relation.
Download or read book Estimating the Cost of Capital Implied by Market Prices and Accounting Data written by Peter Easton and published by Now Publishers Inc. This book was released on 2009 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt: Estimating the Cost of Capital Implied by Market Prices and Accounting Data focuses on estimating the expected rate of return implied by market prices, summary accounting numbers, and forecasts of earnings and dividends. Estimates of the expected rate of return, often used as proxies for the cost of capital, are obtained by inverting accounting-based valuation models. The author describes accounting-based valuation models and discusses how these models have been used, and how they may be used, to obtain estimates of the cost of capital. The practical appeal of accounting-based valuation models is that they focus on the two variables that are commonly at the heart of valuations carried out by equity analysts -- forecasts of earnings and forecasts of earnings growth. The question at the core of this monograph is -- How can these forecasts be used to obtain an estimate of the cost of capital? The author examines the empirical validity of the estimates based on these forecasts and explores ways to improve these estimates. In addition, this monograph details a method for isolating the effect of any factor of interest (such as cross-listing, fraud, disclosure quality, taxes, analyst following, accounting standards, etc.) on the cost of capital. If you are interested in understanding the academic literature on accounting-based estimates of expected rate of return this monograph is for you. Estimating the Cost of Capital Implied by Market Prices and Accounting Data provides a foundation for a deeper comprehension of this literature and will give a jump start to those who have an interest in these topics. The key ideas are introduced via examples based on actual forecasts, accounting information, and market prices for listed firms, and the numerical examples are based on sound algebraic relations.
Download or read book Handbook of Strategic e Business Management written by Francisco J. Martínez-López and published by Springer Science & Business Media. This book was released on 2013-11-19 with total page 1004 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research handbook provides a comprehensive, integrative, and authoritative resource on the main strategic management issues for companies within the e-business context. It covers an extensive set of topics, dealing with the major issues which articulate the e-business framework from a business perspective. The handbook is divided into the following e-business related parts: background; evolved strategic framework for the management of companies; key business processes, areas and activities; and, finally, emerging issues, trends and opportunities, with special attention to diverse Social Web-related implications. The articles are varied, timely and present high-quality research; many of these unique contributions will be especially valued and influential for business scholars and professionals interested in e-business. Many of the contributors are outstanding business scholars who are or have been editors-in-chief of top-ranked management and business journals or have made significant contributions to the development of their respective fields.
Download or read book Disclosure Analyst Forecast Bias and the Cost of Equity Capital written by and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: PhD.
Download or read book Handbook of Research on Promotional Strategies and Consumer Influence in the Service Sector written by Panwar, Upendra Singh and published by IGI Global. This book was released on 2016-04-11 with total page 529 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic growth is directly impacted by a multitude of different industries; in recent years, the service industry has emerged as a significant contributor to the global economy. As such, the effective management of this sector has become a widely studied topic. The Handbook of Research on Promotional Strategies and Consumer Influence in the Service Sector is an authoritative reference source for the latest research on emerging methods for innovative service design and delivery, examining how growing customer expectations and global competition has influenced this industry. Featuring quality factors, marketing tools, and the effects of consumer behavior, this publication is ideally suited for researchers, professionals, and academicians actively involved in the service industry.
