Cost Of Equity, Financial Information Disclosure, And Ifrs Adoption: A Literature Review
AbstractThe cost of equity capital is an important indicator for those who operate on the financial markets, especially for managers and financial resources providers. Even if it is not directly observable, and the models used to determine it are still debated, its importance has continuously increased and in the last decade several researchers in the accounting field started to use it in their empirical analyses. The present paper proposes a review of the scientific literature dedicated to the cost of equity capital, by selecting the papers with a major impact in the scientific trends, and also the latest approaches on this subject, and then, by focusing on the studies in the accounting area. From the accounting perspective, the interest is related to the impact of IFRS (International Financial Reporting Standards) on the cost of equity capital. The utility of this paper is that it reviews the latest scientific works treating the impact of IFRS on the cost of equity capital but also of other variables, thus updating the knowledge base in the Romanian scientific literature.
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Bibliographic InfoArticle provided by Athenaeum University of Bucharest in its journal Internal Auditing and Risk Management.
Volume (Year): 24 (2011)
Issue (Month): 4 (december)
Contact details of provider:
Web page: http://www.univath.ro/facultati/facultatea_de_stiinte_economice
More information through EDIRC
cost of equity capital; IFRS; disclosure; information asymmetry;
Find related papers by JEL classification:
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- M. Gietzmann & J. Ireland, 2005. "Cost of Capital, Strategic Disclosures and Accounting Choice," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 32(3-4), pages 599-634.
- Rene M. Stulz, 1999. "Globalization of Equity Markets and the Cost of Capital," NBER Working Papers 7021, National Bureau of Economic Research, Inc.
- Christensen, Hans B. & Lee, Edward & Walker, Martin, 2007. "Cross-sectional variation in the economic consequences of international accounting harmonization: The case of mandatory IFRS adoption in the UK," The International Journal of Accounting, Elsevier, vol. 42(4), pages 341-379, December.
- Holger Daske & Luzi Hail & Christian Leuz & Rodrigo Verdi, 2008. "Mandatory IFRS Reporting around the World: Early Evidence on the Economic Consequences," Journal of Accounting Research, Wiley Blackwell, vol. 46(5), pages 1085-1142, December.
- David Easley & Maureen O'hara, 2004. "Information and the Cost of Capital," Journal of Finance, American Finance Association, vol. 59(4), pages 1553-1583, 08.
- Barth, Mary E. & Konchitchki, Yaniv & Landsman, Wayne R., 2013.
"Cost of capital and earnings transparency,"
Journal of Accounting and Economics,
Elsevier, vol. 55(2), pages 206-224.
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