File Download

There are no files associated with this item.

  Links for fulltext
     (May Require Subscription)
Supplementary

Article: The effect of disclosures by management, analysts, and business press on cost of capital, return volatility, and analyst forecasts: A study using content analysis

TitleThe effect of disclosures by management, analysts, and business press on cost of capital, return volatility, and analyst forecasts: A study using content analysis
Authors
KeywordsContent Analysis
Cost Of Capital
Disclosure
Issue Date2009
PublisherAmerican Accounting Association. The Journal's web site is located at http://aaapubs.aip.org/accr/
Citation
Accounting Review, 2009, v. 84 n. 5, p. 1639-1670 How to Cite?
AbstractWe document systematic evidence of risk effects of disclosures culled from a virtually exhaustive set of sources from the print medium. We content analyze more than 100,000 disclosure reports by management, analysts, and news reporters (i.e., business press) in constructing firm-specific disclosure measures that are quantitative and amenable to replication. We expect credibility and timeliness differences in the disclosures by source, which would translate into differential cost of capital effects. We find that when content analysis indicates favorable disclosures, the firm's risk, as proxied by the cost of capital, stock return volatility, and analyst forecast dispersion, declines significantly. In contrast, unfavorable disclosures are accompanied by significant increases in risk measures. Analysis of disclosures by source-corporations, analysts, and the business press-reveals that negative disclosures from business press sources result in increased cost of capital and return volatility, and favorable reports from business press reduce the cost of capital and return volatility.
Persistent Identifierhttp://hdl.handle.net/10722/178039
ISSN
2015 Impact Factor: 1.953
2015 SCImago Journal Rankings: 4.478
ISI Accession Number ID
References

 

DC FieldValueLanguage
dc.contributor.authorKothari, SPen_US
dc.contributor.authorLi, Xen_US
dc.contributor.authorShort, JEen_US
dc.date.accessioned2012-12-19T09:41:39Z-
dc.date.available2012-12-19T09:41:39Z-
dc.date.issued2009en_US
dc.identifier.citationAccounting Review, 2009, v. 84 n. 5, p. 1639-1670en_US
dc.identifier.issn0001-4826en_US
dc.identifier.urihttp://hdl.handle.net/10722/178039-
dc.description.abstractWe document systematic evidence of risk effects of disclosures culled from a virtually exhaustive set of sources from the print medium. We content analyze more than 100,000 disclosure reports by management, analysts, and news reporters (i.e., business press) in constructing firm-specific disclosure measures that are quantitative and amenable to replication. We expect credibility and timeliness differences in the disclosures by source, which would translate into differential cost of capital effects. We find that when content analysis indicates favorable disclosures, the firm's risk, as proxied by the cost of capital, stock return volatility, and analyst forecast dispersion, declines significantly. In contrast, unfavorable disclosures are accompanied by significant increases in risk measures. Analysis of disclosures by source-corporations, analysts, and the business press-reveals that negative disclosures from business press sources result in increased cost of capital and return volatility, and favorable reports from business press reduce the cost of capital and return volatility.en_US
dc.languageengen_US
dc.publisherAmerican Accounting Association. The Journal's web site is located at http://aaapubs.aip.org/accr/en_US
dc.relation.ispartofAccounting Reviewen_US
dc.subjectContent Analysisen_US
dc.subjectCost Of Capitalen_US
dc.subjectDisclosureen_US
dc.titleThe effect of disclosures by management, analysts, and business press on cost of capital, return volatility, and analyst forecasts: A study using content analysisen_US
dc.typeArticleen_US
dc.identifier.emailLi, X: xuli1@hku.hken_US
dc.identifier.authorityLi, X=rp01615en_US
dc.description.naturelink_to_subscribed_fulltexten_US
dc.identifier.doi10.2308/accr.2009.84.5.1639en_US
dc.identifier.scopuseid_2-s2.0-72149100994en_US
dc.relation.referenceshttp://www.scopus.com/mlt/select.url?eid=2-s2.0-72149100994&selection=ref&src=s&origin=recordpageen_US
dc.identifier.volume84en_US
dc.identifier.issue5en_US
dc.identifier.spage1639en_US
dc.identifier.epage1670en_US
dc.identifier.isiWOS:000270298300011-
dc.publisher.placeUnited Statesen_US
dc.identifier.scopusauthoridKothari, SP=7102665346en_US
dc.identifier.scopusauthoridLi, X=42961803500en_US
dc.identifier.scopusauthoridShort, JE=35224022000en_US

Export via OAI-PMH Interface in XML Formats


OR


Export to Other Non-XML Formats