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The Influence of E-disclosure on the Ex-Ante Cost of Capital of Listed Companies in Brazil

Author

Listed:
  • Wesley Mendes-Da-Silva

    (Wesley Mendes-Da-Silva, Fundação Getulio Vargas Business School at Sao Paulo and Brigham Young University, Rua Itapeva, 474, 8th floor, Sao Paulo, Brazil, 01332-000. E-mail: mr.mendesdasilva@gmail.com)

  • Luciana Massaro Onusic

    (Luciana Massaro Onusic, Federal University of São Paulo/EPPEN, São Paulo, Brazil. E-mail: lucianaonusic@gmail.com)

  • Daniel Reed Bergmann

    (Daniel Reed Bergmann, University of São Paulo, São Paulo, Brazil. E-mail: prof.drb@gmail.com)

Abstract

The aim of this article is to show the existence of a relationship between voluntary disclosure via corporate websites and the ex-ante cost of capital of companies listed on the BM&FBovespa. Ordinary least-squares regression equations produced the following results: (a) on average, the companies listed on the New Market showed a lower cost of capital (≈3.3 percentage points lower); (b) on average, the companies deemed to be the most aggressive showed a higher cost of capital (≈3 percentage points higher than the conservative companies); and (c) the metrics of corporate website disclosure did not appear to be related to cost of capital. JEL Classification: E32, E44, G31, G32

Suggested Citation

  • Wesley Mendes-Da-Silva & Luciana Massaro Onusic & Daniel Reed Bergmann, 2014. "The Influence of E-disclosure on the Ex-Ante Cost of Capital of Listed Companies in Brazil," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 13(3), pages 335-365, December.
    • Handle: RePEc:sae:emffin:v:13:y:2014:i:3:p:335-365
    DOI: 10.1177/0972652714550928
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    References listed on IDEAS

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    11. repec:dau:papers:123456789/12419 is not listed on IDEAS
    12. Mónica Espinosa & Marco Trombetta, 2007. "Disclosure Interactions and the Cost of Equity Capital: Evidence From the Spanish Continuous Market," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 34(9-10), pages 1371-1392.
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    Cited by:

    1. Alberto A. López-Toro & Eva María Sánchez-Teba & María Dolores Benítez-Márquez & Mercedes Rodríguez-Fernández, 2021. "Influence of ESGC Indicators on Financial Performance of Listed Pharmaceutical Companies," IJERPH, MDPI, vol. 18(9), pages 1-16, April.

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    More about this item

    Keywords

    Disclosure; cost capital; dissemination corporate information; corporate governance; accounting policy;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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