search query: @indexterm CAPITAL COSTS / total: 211
reference: 34 / 211
| Author: | Evans, J. H. III Sridhar, S. S. |
| Title: | Disclosure-Disciplining Mechanisms: Capital Markets, Product Markets, and Shareholder Litigation |
| Journal: | Accounting Review
2002 : JUL, VOL.77-3, p. 595-626 |
| Index terms: | CAPITAL COSTS COSTS SHAREHOLDERS DISCLOSURE |
| Language: | eng |
| Abstract: | This paper demonstrates that a firm's trade-offs between reporting good news to reduce the cost of capital and bad news to minimize proprietary costs can induce the firm's manager to provide truthful disclosures when the opposing effects balance each other. The authors also show that greater proprietary costs can make a firm's disclosures more credible, increase the frequency of voluntary adverse disclosures, and improve the disclosing firm's welfare. Further, the authors find that potential shareholder litigation can interact with capital and product markets' influences to make voluntary disclosures more credible, but only under certain circumstances. |
SCIMA