Voluntary Non?nancial Disclosure And The Cost Of E

THE ACCOUNTING REVIEW Vol. 86, No. 1 2011 pp. 59 degree Celsius American Accounting Association DOI: 10.2308/accr.00000005 Voluntary Non?nancial apocalypse and the represent of Equity Capital: The Initiation of Corporate sociable obligation Reporting Dan S. Dhaliwal The University of Arizona and Korea University Oliver Zhen Li The University of Arizona Albert Tsang Yong George Yang The Chinese University of Hong Kong ABSTRACT: We psychoanalyse a potential bene?t associated with the mental institution of voluntary revelation of corporal complaisant business CSR activities: a reduction in ?rms greet of impartiality peachy. We ?nd that ?rms with a high greet of honor capital in the preceding(prenominal) year melt to initiate disclosure of CSR activities in the flow rate year and that initiating ?rms with passe-partout social responsibility performance admire a attendant reduction in the cost of equity capital. Further, initiating ?rms with superior social re sponsibility performance attract dedicated institutional investors and psychoanalyst coverage. Moreover, these analysts achieve lower absolute prognosis errors and dispersion. Finally, we ?nd that ?rms function the bene?t of a lower cost of equity capital associated with the initiation of CSR disclosure. Initiating ?rms are more probably than non-initiating ?rms to raise equity capital following the initiations; among ?rms raising equity capital, initiating ?rms raise a signi?cantly larger amount than do non-initiating ?rms. Keywords: corporate social responsibility; cost of capital; voluntary disclosure. entropy Availability: The entropy are publicly available from the sources identi?ed in the paper. We appraise the valuable comments from Ying Cao, Zhaoyang Gu, Michel Magnan, Morton Pincus, Suresh Radhakrishnan, T. J. Wong, and seminar participants at the City University of Hong Kong, capital of Singapore Management University, Tsinghua University and 2009 abdominal aortic aneurysm Annual Meeting, and oddly the det! ailed constructive suggestions from Steven Kachelmeier editor and 2 anonymous...If you want to ready a full essay, order it on our website: OrderEssay.net

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