scholarly journals Effect of Frequency of Interim Financial Reporting on Information Asymmetry and Cost of Equity in Companies Listed in Jakarta Islamic Index 2012-2018

2020 ◽  
Vol 3 (2) ◽  
pp. 97
Author(s):  
Ahmad Rosyid ◽  
Alvita Tyas Dwi Aryani
Keyword(s):  
Information Asymmetry ◽  
Financial Reporting ◽  
Frequency Data ◽  
Cost Of Equity ◽  
Research Findings ◽  
Reporting Frequency ◽  
The Cost ◽  
The Relationship

The purpose of this research is to find out the relationship between the frequency of interim financial reporting with information asymmetry and cost of equity for issuers in the Jakarta Islamic Index for the period 2012 to 2018. Research findings on 84 companies, namely (1) there is no relationship between the frequency of interim financial reporting with information asymmetry (2 ) there is no relationship between the frequency of interim financial reporting with the cost of equity. The absence of this relationship is caused by (1) interim financial reporting frequency data that are not different between issuers (2) research settings.

scholarly journals Information Asymmetry, Ownership Structure and Cost of Equity Capital: The Formation for Open Innovation

2021 ◽  
Vol 7 (1) ◽  
pp. 48
Author(s):  
Ade Imam Muslim ◽  
Doddy Setiawan
Keyword(s):  
Stock Market ◽  
Information Asymmetry ◽  
Ownership Structure ◽  
Trading Volume ◽  
Foreign Ownership ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Ownership Structures ◽  
The Cost

Our study aims to investigate how information asymmetry and ownership structure affect cost of equity capital. For that purpose, we collected 246 issuers over 4 years for a total of 984 observations. By using panel data processing, we found that the information asymmetry we proxied through Price non-Synchronization and trading volume had an effect on the cost of equity capital. Our results also confirmed both Agency Theory and Pecking Order Theory. Both theories are in line with the conditions of the stock market in Indonesia. In addition, we found that institutional and foreign ownership structures also had an effect on the cost of equity capital. Furthermore, our results also confirmed Interest Alignment Theory and Entrenchment Theory. Our research is expected to contribute to the debate on the existence of information asymmetry and ownership structures in relation to the cost of equity capital. We also hope that it will be a valuable input for investors in considering their investment. Moreover, from the results of this study, investors can also consider foreign ownership or institutional ownership in determining their investment. In addition, stock market regulators in Indonesia can develop approaches to minimize information asymmetry and encourage foreign investors to invest in Indonesia.

Ambiguous Customer Identity Disclosure and the Cost of Equity Capital

2017 ◽  
Vol 20 (03) ◽  
pp. 1750021 ◽  
Author(s):  
Hsin-Yi Yu ◽  
Li-Wen Chen
Keyword(s):  
Information Asymmetry ◽  
Market Competition ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Proprietary Information ◽  
Customer Information ◽  
Identity Disclosure ◽  
The Cost ◽  
Proprietary Cost

In deciding how much customer information to disclose, managers face a tradeoff between the benefits of reducing information asymmetry and the losses of revealing proprietary information. This paper investigates which factors affect the level of ambiguous customer identity disclosure and whether such ambiguous disclosure affects the cost of equity capital. The empirical evidence shows that the proprietary cost is a crucial factor in ambiguous customer identity disclosure. Firms with a higher level of ambiguous customer identity disclosure generate a higher cost of equity capital. Moreover, the higher cost of equity capital is concentrated among firms under imperfect market competition.

Does IFRS adoption decrease the cost of equity of the global tourism firms?

2017 ◽  
Vol 23 (8) ◽  
pp. 1615-1631
Author(s):  
Zhi-Yuan Feng ◽  
Ying-Chieh Wang ◽  
Hua-Wei Huang
Keyword(s):  
Financial Reporting ◽  
Equity Capital ◽  
Tourism Industry ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Legal Enforcement ◽  
Global Tourism ◽  
The Cost

This article answers the question of whether the adoption of International Financial Reporting Standards (IFRS) reduces the cost of equity capital, with a focus on the tourism industry. We employ a set of global tourism companies and find that mandatory IFRS adoption has a significantly negative relation with the cost of equity capital. However, we find that this relation is varied with different business cultures and geographic areas. Moreover, from interactive analyses of country institutions for the relation between mandatory IFRS adoption and tourism firm’s cost of equity, we show that adopting IFRS complements the deficiencies of various country institutions, such as investor protection, the strength of legal enforcement, and corporate governance.

scholarly journals Risk Disclosure and Cost of Equity: A Bayesian Approach

Revista CEA ◽  
2020 ◽  
Vol 6 (11) ◽  
pp. 25-43
Author(s):  
Jose Miguel Tirado-Beltrán ◽  
José David Cabedo ◽  
Dennis Esther Muñoz-Ramírez
Keyword(s):  
Information Disclosure ◽  
Stock Exchange ◽  
Risk Information ◽  
Financial Risks ◽  
Risk Disclosure ◽  
Cost Of Equity ◽  
Global View ◽  
Bayesian Linear Regression ◽  
The Cost ◽  
The Relationship

This paper aims to analyze the relationship between risk information disclosure and the cost of equity of companies in the Spanish capital market. This study uses a set of 71 firms listed on Madrid stock exchange between 2010 and 2015; all of them are non-financial listed companies for which profit forecasts existed. The problem was analyzed using a Bayesian linear regression approach. The results show that cost of equity and disclosed risk information are not related if a global view of the latter is adopted. However, a positive relationship between financial risks and the cost of equity occurs when risk information is divided into financial and non-financial risks.

scholarly journals Carbon Information Disclosure, Marketization, and Cost of Equity Financing

2019 ◽  
Vol 16 (1) ◽  
pp. 150 ◽  
Author(s):  
Li Li ◽  
Quanqi Liu ◽  
Jun Wang ◽  
Xuefei Hong
Keyword(s):  
Negative Correlation ◽  
Information Disclosure ◽  
Cost Of Equity ◽  
Equity Financing ◽  
Heavy Pollution ◽  
The Cost ◽  
The Relationship

Using listed enterprises in China’s heavy pollution industry from 2009 to 2013, this study tests the relationship between marketization degree, carbon information disclosure, and the cost of equity financing. The results show that, regardless of marketization degree, the overall level of carbon information disclosure of listed enterprises in China’s heavy pollution industry is low. The content of carbon information disclosure is mainly non-financial carbon information, and the financial carbon information disclosure is very low. The cost of equity financing is different in areas with different marketization degrees, specifically speaking, the cost of equity financing is lower in regions with a high marketization degree than that of a low marketization degree. Carbon information disclosure, non-financial carbon information disclosure, and financial carbon information disclosure are negatively correlated with the cost of equity financing. The marketization degree has strengthened the negative correlation between carbon information disclosure, non-financial carbon information disclosure, financial carbon information disclosure, and the cost of equity financing, respectively.

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