Discussion of The Effect of Information on Uncertainty and the Cost of Capital

• 成果类型: Editorial Material
• 署名作者: Plumlee, Marlene A.
• 署名单位: Utah System of Higher Education; University of Utah
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12223
• 发表日期: 2016
• 页码: 775-782
• 关键词: EARNINGS ANNOUNCEMENTS; Disclosure quality; precision

摘要

Johnstone (2016) provides a theoretical analysis of how information might increase uncertainty and a firm's cost of equity capital (COEC). The author's analysis serves to highlight outcomes that he suggests receive limited attention in prior studies. He focuses on how more information might result in greater, rather than less, uncertainty and whether a decrease in uncertainty leads to a lower COEC. I discuss how his study provides an incremental contribution to the theoretical literature and ways in which future work in this area might provide a richer framework for empirical studies.