The interrelationships between corporations' dependence on external financing, information disclosure and cost of capital

Yang, Fu-Ju; Han, Chien-Ting; Sheu, Her‐Jiun

doi:10.1504/ijef.2008.021801

Cited by 6 publications

(2 citation statements)

References 13 publications

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“…Since the banks as creditors have access to all the needed information, the borrowing companies are not provoked to disclose their financial data for this purpose. This kind of behaviour has been confirmed in the case of French listed firms by Boubaker et al (2012) and for the Taiwanese companies by Yang, Han, and Sheu (2008).…”

Section: Development Of the Regression Modelmentioning

confidence: 56%

Determinants of transparency and disclosure – evidence from post-transition economies

Arsov

Bucevska

2017

Economic Research-Ekonomska Istraživanja

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In this paper, we examine the patterns of behaviour of companies from former socialist countries related to the application of good corporate governance practices. We try to assess the level of transparency and to determine if there are any factors that systematically influence corporate behaviour in this regard. Using a sample of 145 companies from Croatia, Macedonia, Slovenia and Serbia, we apply Standard & Poor's (S&P) methodology for assessment of transparency and disclosure levels and find that the companies in these countries generally lag in terms of transparency behind their peers worldwide as measured one decade ago. Additionally, using the same sample, we apply a regression analysis and conclude that the level of transparency is positively related to the size of the company and the need for external financing, but negatively to the concentration of ownership and we also observe important country effects. We do not find a statistically significant relationship between transparency and profitability and relate this finding with the prevailing attitude of the companies towards the stock market. Having in mind the different scores by country and by area of disclosure, we believe that there is still scope for improvement using proper advising and public policy measures.

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Section: Development Of the Regression Modelmentioning

confidence: 56%

Determinants of transparency and disclosure – evidence from post-transition economies

Arsov

Bucevska

2017

Economic Research-Ekonomska Istraživanja

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“…Similarly, Yang et al (2008) demonstrate that Taiwanese companies with greater external financing have more incentives to report higher levels of disclosure and these levels are associated with a lower cost of both debt and equity capital. In contrast, Wang et al (2008) find no evidence that Chinese companies benefit from extensive voluntary disclosure by having a lower CODC.…”

Section: Voluntary Disclosure and Codcmentioning

confidence: 91%

The association between disclosure level and cost of capital in an emerging market: evidence from Egypt

Kamel

Shahwan

2014

AAJFA

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This paper aims to empirically investigate whether the cost of equity and debt capital is related to the extent of voluntary disclosure in the Egyptian stock market. Following the previous research, a disclosure index relevant to the Egyptian environment was developed and applied in OLS regressions, using information provided in the annual reports of 73 Egyptian listed companies. The results, however, indicate that there is no significant association between the level of voluntary disclosure, on the one hand, and the cost of equity capital and debt capital, on the other. This implies that Egyptian companies do not benefit from extensive voluntary disclosure in reducing the cost of equity or debt capital. Hence, the findings of this paper may be of interest to those academic researchers, practitioners and regulators who are interested in discovering the implications of extensive voluntary disclosure in the annual reports of an emerging market such as Egypt.

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Corporate social responsibility reporting in financial institutions: Evidence from Euronext

Ανδρικόπουλος

Samitas

Bekiaris

2014

Research in International Business and Finance

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The interrelationships between corporations' dependence on external financing, information disclosure and cost of capital

Cited by 6 publications

References 13 publications

Determinants of transparency and disclosure – evidence from post-transition economies

Determinants of transparency and disclosure – evidence from post-transition economies

The association between disclosure level and cost of capital in an emerging market: evidence from Egypt

Corporate social responsibility reporting in financial institutions: Evidence from Euronext

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