Financial reporting frequency, information asymmetry, and the cost of equity

• 成果类型: Article
• 署名作者: Fu, Renhui; Kraft, Arthur; Zhang, Huai
• 署名单位: City St Georges, University of London; Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam; Nanyang Technological University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2012.07.003
• 发表日期: 2012
• 关键词: Public disclosure; economic consequences; CORPORATE DISCLOSURE; voluntary; earnings; liquidity; QUALITY; LEVEL; diversification; collection

摘要

Using hand-collected data on firms' interim reporting frequency from 1951 to 1973, we examine the impact of financial reporting frequency on information asymmetry and the cost of equity. Our results show that higher reporting frequency reduces information asymmetry and the cost of equity, and they are robust towards considerations of the endogenous nature of firms' reporting frequency choice. We obtain similar results when we focus on mandatory changes in reporting frequency. Our results suggest the benefits of increased reporting frequency. (C) 2012 Elsevier B.V. All rights reserved.