When does the peer information environment matter?

• 成果类型: Article
• 署名作者: Shroff, Nemit; Verdi, Rodrigo S.; Yost, Benjamin P.
• 署名单位: Massachusetts Institute of Technology (MIT); Boston College
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2017.03.005
• 发表日期: 2017
• 关键词: DISCLOSURE REGULATION; Investment decisions; earnings quality; Private Firms; financial intermediation; economic consequences; management forecasts; MANDATORY DISCLOSURE; stock-prices; MARKET

摘要

This paper examines whether and when the information environment of peer firms in an industry affects the cost of capital for other firms in the industry. We predict and find that the peer information environment is negatively associated with a firm's cost of capital when there is less publicly available firm-specific information and this negative association shrinks as the amount of firm-specific information increases. This paper provides evidence that information about peer-firms has externalities on the cost of capital for related firms and that these externalities are time-varying. (C) 2017 Elsevier B.V. All rights reserved.