Do IFRS Disclosure Requirements Reduce the Cost of Capital? Evidence from Australia

Title: Do IFRS Disclosure Requirements Reduce the Cost of Capital? Evidence from Australia
Creator: Saha, Amitav; Bose, Sudipta
Relation: Accounting and Finance Vol. 61, Issue 3, p. 4669-4701
Publisher Link: http://dx.doi.org/10.1111/acfi.12744
Publisher: John Wiley & Sons
Resource Type: journal article
Date: 2021
Description: We examine the association between the disclosure requirements of the International Financial Reporting Standards (IFRS) and the cost of capital for a sample of Australian firms. We find that these disclosure requirements have a negative association with the cost of capital. The interpretation is that firms with a higher level of IFRS disclosure have a lower cost of capital. Further analysis shows that IFRS disclosure requirements are negatively related to the cost of debt and equity capital. Our findings contribute to the debate on the relative costs and benefits of IFRS disclosure requirements and have important implications for standard setters, regulators, and users of financial statements. The original article refers to the Erratum by Amitav Saha and Sudipta Bose https://doi.org/10.1111/acfi.12899
Subject: Australia; cost of debt; cost of equity; disclosure; International Financial Reporting Standards (IFRS); weighted average cost of capital
Identifier: http://hdl.handle.net/1959.13/1484965
Identifier: uon:51461
Identifier: ISSN:0810-5391
Language: eng
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