Web-Based Non-Financial Disclosure and Cost of Finance

Journal of Business Finance and Accounting, Forthcoming

Posted: 3 May 2010

See all articles by Raf Orens

Raf Orens

Catholic University of Louvain (UCL) - Lessius University College

Walter Aerts

University of Antwerp

Denis Cormier

University du Quebec a Montreal

Multiple version iconThere are 2 versions of this paper

Date Written: April, 30 2010

Abstract

We study the association of Web-based non-financial disclosure and a firm's cost of finance within an international context (North America and continental Europe). We examine voluntary Web placement of non-financial disclosures using an information index covering a firm's value creation process. We find a negative association between the level of Web-based non-financial disclosure and the implied cost of equity capital in North America and in continental Europe. Continental European firms with higher levels of Web-based non-financial disclosure also tend to benefit from a lower information asymmetry and from a lower cost of debt capital, whereas North American firms do not.

Keywords: Continental Europe, cost of debt capital, implied cost of equity capital, endogeneity, cost of finance, information asymmetry, Internet reporting, non-financial disclosure, North America, Web disclosure

JEL Classification: M41

Suggested Citation

Orens, Raf and Aerts, Walter and Cormier, Denis, Web-Based Non-Financial Disclosure and Cost of Finance (April, 30 2010). Journal of Business Finance and Accounting, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1598189

Raf Orens (Contact Author)

Catholic University of Louvain (UCL) - Lessius University College ( email )

Department of Business Studies
Korte Nieuwstraat 33
Antwerp, 2000
Belgium

Walter Aerts

University of Antwerp ( email )

Prinsstraat 13
Antwerpen, B-2000
Belgium
003232654110 (Phone)
003232654064 (Fax)

Denis Cormier

University du Quebec a Montreal ( email )

P.O. Box 8888, Downtown Station
Succursale Centre Ville School of Management 315 rue Ste-Catherine Est
Montreal, Quebec H3C 3P8
Canada
514-987-3000, ext. 8358 (Phone)
514-987-6629 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
1,125
PlumX Metrics