Information asymmetry, information dissemination and the effect of regulation FD on the cost of capital

• 成果类型: Article
• 署名作者: Duarte, Jefferson; Han, Xi; Harford, Jarrad; Young, Lance
• 署名单位: University of Washington; University of Washington Seattle; Tsinghua University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2006.12.005
• 发表日期: 2008
• 页码: 24-44
• 关键词: regulation FD; cost of capital; information asymmetry

摘要

This paper considers the impact of Regulation Fair Disclosure (FD) on firms' information environments and costs of capital. For NYSE/Amex firms we find little evidence of a change in the cost of capital attributable to Regulation FD. For Nasdaq firms we find that Regulation FD increased firms' costs of capital by 10-19 basis points per annum though the statistical significance of this change is modest for some of our models. We also show substantial cross-sectional variation in the cost If capital changes. We find that cost of capital changes were negatively related to both pre-regulation firm size and PIN. In addition to the findings regarding Regulation FD, this research contributes to a growing literature that documents links between firms' information environments and their costs of capital. (c) 2007 Elsevier B.V. All rights reserved.