Non-Financial Reporting And The Cost Of Capital In BRICS Countries
28 Pages Posted: 25 Jun 2021 Last revised: 26 Jun 2021
Date Written: June 23, 2021
This paper considers the impact of non-financial reporting (NFR) on the cost of capital (COC) in the forms of the cost of equity (COE), the cost of debt (COD), and the weighted average cost of equity (WACC). It was revealed that companies publishing non-financial reports have a lower COC. COD, COE, and WACC reduce after NFR. Six industries, where the cost of equity and debt capital is lower for companies publishing NFR, were determined: consumer discretionary, energy, industrials, information technology, healthcare, and materials. According to the analysis, companies that issued non-financial reports have a lower COE capital growth rate.
Keywords: non-financial reporting, CSR, cost of capital, BRICS countries
JEL Classification: G32, M40
Suggested Citation: Suggested Citation