Non-Financial Reporting And The Cost Of Capital In BRICS Countries

28 Pages Posted: 25 Jun 2021 Last revised: 26 Jun 2021

See all articles by Mariia Evdokimova

Mariia Evdokimova

National Research University Higher School of Economics

Sergey Kuzubov

National Research University Higher School of Economics

Date Written: June 23, 2021

Abstract

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

Evdokimova, Mariia and Kuzubov, Sergey, Non-Financial Reporting And The Cost Of Capital In BRICS Countries (June 23, 2021). Higher School of Economics Research Paper No. WP BRP 83/FE/2021, Available at SSRN: https://ssrn.com/abstract=3872502 or http://dx.doi.org/10.2139/ssrn.3872502

Mariia Evdokimova (Contact Author)

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Sergey Kuzubov

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

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