Abstract

http://ssrn.com/abstract=2118815
 


 



Discussion of 'Financial Reporting Frequency, Information Asymmetry, and the Cost of Equity'


Rodrigo S. Verdi


Massachusetts Institute of Technology (MIT)

July 10, 2012

Journal of Accounting & Economics (JAE), Forthcoming

Abstract:     
Fu, Kraft and Zhang (2012) use a hand-collected sample of firms with different interim reporting frequencies from 1951 to 1973 to test whether higher reporting frequency is associated with lower information asymmetry and a lower cost of equity capital. Their results suggest that firms with higher reporting frequency (e.g., firms reporting quarterly as opposed to annually) have lower information asymmetry and a lower cost of equity capital. In this discussion, I expand on FKZ by elaborating on their hypothesis development and research design, and providing suggestions for future research.

Number of Pages in PDF File: 13

Keywords: Interim reporting frequency, information asymmetry, cost of equity

JEL Classification: G14, G18, M41, M45

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Date posted: July 29, 2012  

Suggested Citation

Verdi, Rodrigo S., Discussion of 'Financial Reporting Frequency, Information Asymmetry, and the Cost of Equity' (July 10, 2012). Journal of Accounting & Economics (JAE), Forthcoming. Available at SSRN: http://ssrn.com/abstract=2118815

Contact Information

Rodrigo S. Verdi (Contact Author)
Massachusetts Institute of Technology (MIT) ( email )
Sloan School of Management
100 Main Street E62-679
Cambridge, MA 02142
United States
(617) 253 2956 (Phone)
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