English, Article edition: Disclosure channel and cost of capital: evidence from open vs closed conference calls Yijiang Zhao; Michael Davis; Kevin T. Berry

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/31556
Physical Description
  • article
Language
  • English

Edition details

Title
  • Disclosure channel and cost of capital: evidence from open vs closed conference calls
Author
  • Yijiang Zhao
  • Michael Davis
  • Kevin T. Berry
Physical Description
  • article
Notes
  • Purpose – The purpose of this paper is to examine the effect on the cost of capital of increased disclosure that reduces information asymmetry among market participants. Design/​methodology/​approach – This study uses the decision to regularly hold open (closed) conference calls pre-Reg FD as a proxy for a commitment to the policy of public (selective) disclosure and a cross-sectional research design to examine the associations between open/​closed conference calls and three proxies for firms' cost of capital (i.e. bid-ask spreads, share turnover, and implied costs of capital). Findings – The results show that firms that commit to open calls exhibit lower relative bid-ask spreads, lower implied costs of capital, and higher share turnover than firms that commit to closed calls. Practical implications – The findings suggest that increased disclosure that “levels the playing field” for small investors benefits investors as a whole by improving firms' market liquidity and reducing the cost of capital. Originality/​value – This study contributes to existing literature on the association between corporate disclosure and firms' cost of capital.
  • Bid offer spreads, Cost of capital, Disclosure, United States of America
  • RePEc:eme:rafpps:v:8:y:2009:i:3:p:253-278
Language
  • English
Contributed by
OAIster

Get this edition

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment