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dc.contributor.authorFrancis, JR
dc.contributor.authorKhurana, IK
dc.contributor.authorPereira, R
dc.date.available2014-05-21T20:55:37Z
dc.date.issued2005-10-01
dc.identifierhttp://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000232968600005&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=d4d813f4571fa7d6246bdc0dfeca3a1c
dc.identifier.citationFrancis, J. R., Khurana, I. K. & Pereira, R. (2005). Disclosure incentives and effects on cost of capital around the world. ACCOUNTING REVIEW, 80 (4), pp.1125-1162. https://doi.org/10.2308/accr.2005.80.4.1125.
dc.identifier.issn0001-4826
dc.identifier.urihttp://hdl.handle.net/11343/27908
dc.descriptionC1 - Refereed Journal Article
dc.description.abstract<jats:p>Prior research predicts that firms reliant on external financing are more likely to undertake a higher level of disclosure, and a higher disclosure level should, in turn, lead to a lower cost of external financing. This paper tests these predictions outside the United States where alternative legal and financial systems could mitigate the effectiveness of such disclosures and, comprehensively, examines both disclosure incentives and disclosure consequences on cost of capital for a common set of firms. Using a sample from 34 countries, we find that firms in industries with greater external financing needs have higher voluntary disclosure levels, and that an expanded disclosure policy for these firms leads to a lower cost of both debt and equity capital. Crosscountry differences in legal and financial systems affect observed disclosure levels in predicted ways. However, a surprising result in the study is that voluntary disclosure incentives appear to operate independently of country-level factors, which suggests the effectiveness of voluntary disclosure in gaining access to lower cost external financing around the world.</jats:p>
dc.languageEnglish
dc.publisherAMER ACCOUNTING ASSOC
dc.subjectAccounting
dc.subjectAuditing and Accountability
dc.titleDisclosure incentives and effects on cost of capital around the world
dc.typeJournal Article
dc.identifier.doi10.2308/accr.2005.80.4.1125
melbourne.peerreviewPeer Reviewed
melbourne.affiliationThe University of Melbourne
melbourne.affiliation.departmentAccounting and Business Information Systems
melbourne.source.titleACCOUNTING REVIEW
melbourne.source.volume80
melbourne.source.issue4
melbourne.source.pages1125-1162
dc.research.codefor1501
melbourne.publicationid41169
melbourne.elementsid271326
melbourne.contributor.authorFRANCIS, JERE
melbourne.internal.ingestnoteAbstract bulk upload (2017-07-20)
dc.identifier.eissn1558-7967
melbourne.accessrightsThis item is currently not available from this repository


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