Web‐Based Non‐Financial Disclosure and Cost of Finance

Orens, Raf; Aerts, Walter; Cormier, Denis

doi:10.1111/j.1468-5957.2010.02212.x

Cited by 123 publications

(183 citation statements)

References 123 publications

(229 reference statements)

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“…Accordingly, it is expected that high earnings variability will increase the cost of debt. Finally, firms reporting negative earnings are characterized by greater uncertainty concerning future profitability (Orens et al, 2010). Therefore, we expect that a negative earning implies a higher cost of debt.…”

Section: Control Variablesmentioning

confidence: 99%

“…Cost of debt is proxied by the rate of interest paid defined as the interest expense for firm i and year t divided by the short-term and long-term debts at the beginning of year t for firm i (Sengupta, 1998;Orens, Aerts, & Cormier, 2010;Guidara et al, 2014):…”

Section: Dependent Variablementioning

confidence: 99%

“…Therefore, we control for maturity and we expect that the cost of debt increases with maturity. In addition, high earnings variability implies more risk and less capability to estimate the future earnings of firms (Orens et al, 2010). Accordingly, it is expected that high earnings variability will increase the cost of debt.…”

Section: Control Variablesmentioning

confidence: 99%

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Audit Quality, Timely Disclosure, and the Cost of Debt: Tunisian Evidence

Achek¹,

Gallali²

2015

JMAA

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The aim of this study is to investigate the effect of auditor type and earnings reporting lag on the cost of debt for the Tunisian setting. Our sample consists of 32 Tunisian companies for the period of 2003-2012. Audit quality is measured by auditor size (Big 4 versus non-Big 4) and timely disclosure is proxied by earnings reporting lag.Results show that auditor type is negatively associated with the cost of debt. By contrast, the association between earnings announcement lag and the cost of debt is positive and significant. When testing for the moderating effects of industry and listing status, we document that these associations are more pronounced for industrial companies and listed firms. Finally, the period of investigation slightly moderates the examined associations, since financial institutions become more sensitive to the tardy communication of information and less concerned with auditor type following some economic and political troubles in Tunisia between 2010 and 2012. Our findings have policy implications for managers in the Tunisian setting and other developing economies similar to Tunisia given the crucial role played by debt as an important source of external finance for companies.

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Section: Control Variablesmentioning

confidence: 99%

Section: Dependent Variablementioning

confidence: 99%

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Audit Quality, Timely Disclosure, and the Cost of Debt: Tunisian Evidence

Achek¹,

Gallali²

2015

JMAA

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“…Bukh et al, 2005;Singh & Zahn, 2008) or web-based/HTML-type reporting (e.g. Orens et al 2009Orens et al , 2010; (4) capital market or the country in which the study was undertaken; according to Orens et al (2010Orens et al ( , p. 1058) studies usually »ignore how institutional differences may affect content and consequences of Web-based non-financial disclosure practices«, which could be extended to all non-financial disclosures;…”

Section: Discussionmentioning

confidence: 99%

“…When only publicly accessible data are available, an estimate for the cost of debt capital as the ratio between all annual interest and other financial expenses and its average annual short-term and long-term financial liabilities towards banks, group organisations and others (the average of the value at the beginning and at the end of the year) was usually used in prior studies (e.g. Pittman & Fortin, 2004;Byun, 2007;Hyytinen & Pajarinen, 2007;Orens et al 2010;Karjalainen, 2011;Kim et al, 2011;Minnis, 2011). This estimate was used in our research, too.…”

Section: Cost Of Debt Capitalmentioning

confidence: 99%

The Relationship Between the Intellectual Capital Disclosure and Cost of Debt Capital – A Case of Slovenian Private Audited Organisations

Stropnik

Korošec

Tominc

2017

Naše Gospodarstvo/Our Economy

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The existing empirical research into the association between intellectual capital disclosures by organisations and the cost of debt is scarce or is based solely on the samples of the (large) listed organisations. Since agency issues between management/owners and lenders exist also in (large) private organisations whose financing is greatly dependent on loans and whose audited annual reports can be a source of additional information for external users, we performed an empirical research to find the answer to the question whether the level of intellectual capital disclosure (as a whole and of its sub-categories) of organisations is associated with the cost of their debt capital. Our study was performed on a sample of private Slovenian organisations with audited annual reports. The results of our research did not reveal that lenders would take into account intellectual capital disclosures by Slovenian private audited organisations as the information about the potential for their future cash flows when deciding on the cost of debt issued to these organisations.

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The effect of carbon dissemination on cost of equity

2019

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This study examines whether firms can influence their cost of equity (COE) by broadly disseminating their carbon information over Twitter. We study firms' dissemination decisions of carbon information by developing a comprehensive measure of carbon information that a firm makes onTwitter, referred to as iCarbon. Using a sample of 1,737 firmyear observations for 584 nonfinancial firms with aTwitter account and listed on the U.S. NASDAQ stock exchange over the period 2009-2015, we find that iCarbon is significantly and negatively associated with COE. Our results are consistent after determining the effect of Bloomberg's environmental and environmental, social, and governance disclosure. The findings also hold when using alternative measures of COE and iCarbon.

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Web‐Based Non‐Financial Disclosure and Cost of Finance

Abstract: Continental Europe , cost of debt capital , implied cost of equity capital , endogeneity , cost of finance , information asymmetry , Internet reporting , non-financial disclosure , North America , Web disclosure ,

Cited by 123 publications

References 123 publications

Audit Quality, Timely Disclosure, and the Cost of Debt: Tunisian Evidence

Audit Quality, Timely Disclosure, and the Cost of Debt: Tunisian Evidence

The Relationship Between the Intellectual Capital Disclosure and Cost of Debt Capital – A Case of Slovenian Private Audited Organisations

The effect of carbon dissemination on cost of equity

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