Open Access. Powered by Scholars. Published by Universities.®
- Discipline
- Institution
- Publication Year
- Publication
-
- Research Collection School Of Accountancy (12)
- Accounting (3)
- Accounting Papers (3)
- Accounting Faculty Publications (1)
- All Works (1)
-
- Business Faculty Publications (1)
- Business Publications (1)
- Dissertations, Theses, and Capstone Projects (1)
- Dr Elisabeth Sinnewe (1)
- Electronic Theses and Dissertations (1)
- Faculty Publications (1)
- Graduate Theses and Dissertations (1)
- Research Collection BNP Paribas Hedge Fund Centre (1)
- School of Business: Faculty Publications and Other Works (1)
- Publication Type
- File Type
Articles 1 - 29 of 29
Full-Text Articles in Business
Managers' Pay Duration And Voluntary Disclosures, Qiang Cheng, Young Jun Cho, Jae B. Kim
Managers' Pay Duration And Voluntary Disclosures, Qiang Cheng, Young Jun Cho, Jae B. Kim
Research Collection School Of Accountancy
Given the adverse effect on their welfare, managers are reluctant to disclose bad news in a timely fashion. We examine the effect of managers' pay duration on firms' voluntary disclosures of bad news. Pay duration refers to the average period that it takes for managers' annual compensation to vest. We hypothesize and find that pay durations can incentivize managers to provide more bad news earnings forecasts. This result holds after controlling for the endogeneity of pay duration. In addition, we find that the effect of pay duration is more pronounced for firms with weaker governance and with poorer information environments, …
The Role Of Convex Equity Incentives In Managers’ Forecasting Decisions, Young Jun Cho, David Tsui, Holly I. Yang
The Role Of Convex Equity Incentives In Managers’ Forecasting Decisions, Young Jun Cho, David Tsui, Holly I. Yang
Research Collection School Of Accountancy
Prior literature suggests that voluntary disclosures of forward-looking information tend to lead to capital market benefits, but these disclosures may also result in negative capital market consequences if subsequent performance falls below expectations. We, therefore, hypothesize that convex equity incentives, which reward managers for stock price gains while limiting their exposure to losses, should promote greater voluntary forward-looking disclosure. Consistent with our hypothesis, we find a significantly positive association between equity incentive convexity and forecast issuance and frequency. We also find that the positive association is more pronounced for firms with higher sales volatility and managers with shorter tenure, in …
The Strategic Disclosure Of Currency Headwinds And Tailwinds, Kevin Butler
The Strategic Disclosure Of Currency Headwinds And Tailwinds, Kevin Butler
Graduate Theses and Dissertations
In this study, I examine whether companies are more likely to disclose revenue growth adjusted to remove the effects of foreign currency fluctuations (constant-currency revenue growth rates) when currency fluctuations decrease revenue growth (i.e., there is a currency headwind) than when currency fluctuations increase revenue growth. Public companies increasingly cite non-GAAP performance metrics when announcing earnings. While regulators see value in non-GAAP reporting, they continue to express concern that it is carried out inconsistently and in a misleading manner. Because the disclosure of constant-currency revenue growth is discretionary, companies have an incentive to strategically disclose it only when it benefits …
Corporate Voluntary Greenhouse Gas Reporting: Stakeholder Pressure And The Mediating Role Of The Chief Executive Officer, Lyton Chithambo, Ishmael Tingbani, Godfred Afrifa Agyapong, Ernest Gyapong, Isaac Sakyi Damoah
Corporate Voluntary Greenhouse Gas Reporting: Stakeholder Pressure And The Mediating Role Of The Chief Executive Officer, Lyton Chithambo, Ishmael Tingbani, Godfred Afrifa Agyapong, Ernest Gyapong, Isaac Sakyi Damoah
All Works
© 2020 The Authors. Business Strategy and The Environment published by ERP Environment and John Wiley & Sons Ltd The study sheds light on the extent to which various stakeholder pressures influence voluntary disclosure of greenhouse gas (GHG) emissions and how the impact is explained and moderated chief executive officer (CEO) characteristics of 215 FTSE 350 listed U.K. companies for the year 2011. The study developed a classification of GHG emission disclosure based on the guidelines of GHG Protocol, Department for Environment, Food and Rural Affairs, and Global Framework for Climate Risk Disclosure using content analysis. Evidence from the study …
Information Externalities And Voluntary Disclosure: Evidence From A Major Customer’S Earnings Announcement, Young Jun Cho, Yongtae Kim, Yoonseok Zang
Information Externalities And Voluntary Disclosure: Evidence From A Major Customer’S Earnings Announcement, Young Jun Cho, Yongtae Kim, Yoonseok Zang
Research Collection School Of Accountancy
We examine the relation between information externalities along the supply chain and voluntary disclosure. Information transfers from a major customer's earnings announcement (EA) can substitute for its supplier's disclosure. Conversely, if the customer's EA increases uncertainties regarding the supplier's future prospects, it can increase the demand for disclosure. After controlling for information incorporated in supplier returns, we find that the supplier is more likely to issue earnings guidance after the customer's EA when the EA news deviates more from the market's expectation. The positive effect of the customer's news on earnings guidance is weaker when common investors, supply-chain analysts, or …
The Effects Of Risk Management On Management Forecast Behavior, John L. Campbell, Sean Cao, Hye Sun Chang, Raluca Chiorean
The Effects Of Risk Management On Management Forecast Behavior, John L. Campbell, Sean Cao, Hye Sun Chang, Raluca Chiorean
Research Collection School Of Accountancy
Prior research examines several reasons why managers voluntarily disclose information, but provides relatively little evidence as to whether day-to-day operational decisions influence a manager’s disclosure choice. In this study, we examine whether a particular operational activity – risk management through the use of derivatives – affects whether a manager decides to issue earnings forecasts. Using a large hand-collected sample of derivatives users and non-users, we find that derivatives users are more likely to issue earnings forecasts relative to non-users. We then find that this result is stronger when the use of derivatives makes it less costly for managers to issue …
Does The Cessation Of Quarterly Earnings Guidance Reduce Investors’ Short-Termism?, Yongtae Kim, Lixin (Nancy) Su, Xindong (Kevin) Zhu
Does The Cessation Of Quarterly Earnings Guidance Reduce Investors’ Short-Termism?, Yongtae Kim, Lixin (Nancy) Su, Xindong (Kevin) Zhu
Accounting
The practice of providing quarterly earnings guidance has been criticized for encouraging investors to fixate on short-term earnings and encouraging managerial myopia. Using data from the post–Regulation Fair Disclosure period, we examine whether the cessation of quarterly earnings guidance reduces short-termism among investors. We show that, after guidance cessation, investors in firms that stop quarterly guidance are composed of a larger (smaller) proportion of long-term (short-term) institutions, put more (less) weight on long-term (short-term) earnings in firm valuation, become more (less) sensitive to analysts’ long-term (short-term) earning forecast revisions, and are less likely to dismiss chief executive officers for missing …
Voluntary Fair Value Disclosures Beyond Sfas 157’S Three-Level Estimates, Sung Gon Chung, Beng Wee Goh, Jeffrey Ng, Kevin Ow Yong
Voluntary Fair Value Disclosures Beyond Sfas 157’S Three-Level Estimates, Sung Gon Chung, Beng Wee Goh, Jeffrey Ng, Kevin Ow Yong
Research Collection School Of Accountancy
Some firms voluntarily make disclosures about the controls and processes in place to ensure the reliability of fair value estimates. Consistent with these disclosures being driven by management’s concerns about the reliability of their SFAS 157 estimates, we find that firms with more opaque estimates are more likely to provide such disclosures. We then examine whether these disclosures increase the reliability of fair value estimates. We find that they are associated with higher market pricing and lower information risk for Level 3 estimates. Further analyses of the contents of the reliability disclosures reveal that the following are particularly important to …
Accounting Flexibility And Managers' Forecast Behavior Prior To Seasoned Equity Offerings, Jae Bum Kim
Accounting Flexibility And Managers' Forecast Behavior Prior To Seasoned Equity Offerings, Jae Bum Kim
Research Collection School Of Accountancy
This study examines the effect of accounting flexibility on managers’ forecasting behavior prior to seasoned equity offerings (SEOs). Although SEO firms have a strong incentive to convey optimistic information to boost the pre-SEO stock price, they also face enhanced litigation risk arising from SEO-related regulations. Thus, I hypothesize that managers will release positive news through their forecasts (relative to the prevailing analyst consensus) prior to an SEO only if they have the accounting flexibility to manage subsequent reported earnings to meet or exceed their forecasts. I find that managers with greater accounting flexibility are more likely to issue a forecast …
An Analysis Of The Relationship Between Ceo Compensation And Corporate Social Responsibility Disclosure Type And Quality, Nicole M. Heron
An Analysis Of The Relationship Between Ceo Compensation And Corporate Social Responsibility Disclosure Type And Quality, Nicole M. Heron
Dissertations, Theses, and Capstone Projects
The construct of corporate social responsibility (CSR) itself is comprised of three underlying components: environmental, social, and corporate governance. However, it is unclear from the extant literature whether and how these underlying components of CSR are related to CEO compensation. In the absence of a theoretical model of CSR that specifically considers its underlying components, I present in this paper an exploratory analysis of the relationships between CEO compensation and CSR disclosure type and quality. My CSR proxies are based on a firm’s environmental, social and corporate governance-related disclosure, as reported by Bloomberg. I calculate total CEO compensation as the …
Mandatory Financial Reporting And Voluntary Disclosure: The Effect Of Mandatory Ifrs Adoption On Management Forecasts, Xi Li, Holly I. Yang
Mandatory Financial Reporting And Voluntary Disclosure: The Effect Of Mandatory Ifrs Adoption On Management Forecasts, Xi Li, Holly I. Yang
Research Collection School Of Accountancy
This study examines the effect of the mandatory adoption of International Financial Reporting Standards (IFRS) on voluntary disclosure. Using a difference-in-difference analysis, we document a significant increase in the likelihood and frequency of management earnings forecasts following mandatory IFRS adoption, consistent with the notion that IFRS adoption alters firms' disclosure incentives in response to increased capital-market demand. We find the increase to be larger among firms domiciled in code-law countries, suggesting a catching-up effect among firms facing low disclosure incentives pre-adoption. We then propose and test three channels through which IFRS adoption could alter firms' disclosure incentives: improved earnings quality, …
Mandatory Financial Reporting And Voluntary Disclosure: The Effect Of Mandatory Ifrs Adoption On Management Forecasts, Xi Li, Holly I. Yang
Mandatory Financial Reporting And Voluntary Disclosure: The Effect Of Mandatory Ifrs Adoption On Management Forecasts, Xi Li, Holly I. Yang
Research Collection School Of Accountancy
This study examines the effect of the mandatory adoption of International Financial Reporting Standards (IFRS) on voluntary disclosure. Using a difference-in-difference analysis, we document a significant increase in the likelihood and frequency of management earnings forecasts following mandatory IFRS adoption, consistent with the notion that IFRS adoption alters firms' disclosure incentives in response to increased capital-market demand. We find the increase to be larger among firms domiciled in code-law countries, suggesting a catching-up effect among firms facing low disclosure incentives pre-adoption. We then propose and test three channels through which IFRS adoption could alter firms' disclosure incentives: improved earnings quality, …
Ipo Firms' Voluntary Compliance With Sox 404 As Evidence On The Value Relevance Of Internal Control Quality, Qianyun Huang, Kimberly Gleason, Leonard Rosenthal, Deborah Smith
Ipo Firms' Voluntary Compliance With Sox 404 As Evidence On The Value Relevance Of Internal Control Quality, Qianyun Huang, Kimberly Gleason, Leonard Rosenthal, Deborah Smith
Business Faculty Publications
Newly public firms are not required to comply with SOX 404 for their initial public offerings. This provides a unique setting in which to investigate the benefits of voluntary disclosure with SOX 404 and the value of information revealed as a consequence of compliance. We investigate whether voluntary compliance with SOX 404, either fully or partially, impacts the perceived risk of firms conducting IPOs on the first day of trading (reflected in underpricing) or following the IPO. Our results indicate that neither full compliance with SOX 404 at the time of the IPO, nor a managerial discussion of internal controls …
Voluntary Disclosure And The Cost Of Capital, Greg Clinch, Robert E. Verrecchia
Voluntary Disclosure And The Cost Of Capital, Greg Clinch, Robert E. Verrecchia
Accounting Papers
We investigate the association between voluntary disclosure and the risk-related discount investors apply to price. First, we study the association between (endogenous) disclosure choice and the discount in price induced by changes in the underlying model parameters: this informs empirical research that ignores endogeneity of disclosure by, for example, omitting the exogenous determinants of disclosure and the discount in price from the regressions employed. Second, we investigate the incremental effect of disclosure on the discount in price: this informs empirical research that controls for the direct effect of exogenous factors on the discount in price by, for example, including the …
An Empirical Investigation Of Voluntary Non-Ifrs Earnings Reporting During The Recent Financial Crisis : Australian Evidence, Elisabeth Sinnewe
An Empirical Investigation Of Voluntary Non-Ifrs Earnings Reporting During The Recent Financial Crisis : Australian Evidence, Elisabeth Sinnewe
Dr Elisabeth Sinnewe
This study examines how the financial crisis affected the reporting choice of and market reaction to earnings that are different from the profit firms report on their income statement under International Financial Reporting Standards (IFRS). These non-IFRS earnings reflect management’s subjective of view of earnings. By observing management’s reporting choices and investors’ reaction in Australia prior to, during, and after the financial crisis, this study shows a distinctive effect of the economic condition on reporting non-IFRS earnings. As such, this study contributes to the limited attention hypothesis suggesting that information-equivalent disclosure is perceived as value relevant by management and investors …
Difference In Degrees: Ceo Characteristics And Firm Environmental Disclosure, Ben W. Lewis, Judith L. Walls, Glen W. S. Dowell
Difference In Degrees: Ceo Characteristics And Firm Environmental Disclosure, Ben W. Lewis, Judith L. Walls, Glen W. S. Dowell
Faculty Publications
We contribute to the literature on firms’ responses to institutional pressures and environmental information disclosure. We hypothesize that CEO characteristics such as education and tenure will influence firms’ likelihood to voluntarily disclose environmental information. We test our hypotheses by examining firms’ responses to the Carbon Disclosure Project (CDP) and find that firms led by newly appointed CEOs and CEOs with MBA degrees are more likely to respond to the CDP, while those led by lawyers are less likely to respond. Our results have implications for research on strategic responses to institutional pressures and corporate environmental performance.
Management Forecast Credibility And Underreaction To News, Jeffrey Ng, Irem Tuna, Rodrigo Verdi
Management Forecast Credibility And Underreaction To News, Jeffrey Ng, Irem Tuna, Rodrigo Verdi
Research Collection School Of Accountancy
In this paper, we first document evidence of underreaction to management forecast news. We then hypothesize that the credibility of the forecast influences the magnitude of this underreaction. Relying on evidence that more credible forecasts are associated with a larger reaction in the short window around the management forecasts and a smaller post-management forecast drift in returns, we show that the magnitude of the underreaction is smaller for firms that provide more credible forecasts. Our paper contributes to the literature by providing out-of-sample evidence of the drift in returns documented in the post-earnings-announcement drift literature, with the credibility of the …
A Survey Of Executive Compensation Contracts In China’S Listed Companies, Yubo Li, Fang Lou, Jiwei Wang, Hongqi Yuan
A Survey Of Executive Compensation Contracts In China’S Listed Companies, Yubo Li, Fang Lou, Jiwei Wang, Hongqi Yuan
Research Collection School Of Accountancy
We analyze 228 executive compensation contracts voluntarily disclosed by Chinese listed firms and find that central-government-controlled companies disclose more information in executive compensation contracts than local-government-controlled and non-government-controlled companies. Cash-based payments are the main form of executive compensation, whereas equity-based payments are seldom used by Chinese listed companies. On average, there are no significant differences in the value of basic salaries and performance-based compensation in executive compensation contracts. But, compared with their counterparts in non-government-controlled companies, executives in government-controlled companies are given more incentive compensation. Accounting earnings are typically used in executive compensation contracts, with few firms using stock returns …
Inferring Reporting-Related Biases In Hedge Fund Databases From Hedge Fund Equity Holdings, Vikas Agarwal, Vyacheslav Fos, Wei Jiang
Inferring Reporting-Related Biases In Hedge Fund Databases From Hedge Fund Equity Holdings, Vikas Agarwal, Vyacheslav Fos, Wei Jiang
Research Collection BNP Paribas Hedge Fund Centre
This paper formally analyzes the biases related to self-reporting in hedge fund databases by matching the quarterly equity holdings of a complete list of 13F-filing hedge fund companies to the union of five major commercial databases of self-reporting hedge funds between 1980 and 2008. We find that funds initiate self-reporting after positive abnormal returns that do not persist into the reporting period. Termination of self-reporting is followed by both return deterioration and outflows from the funds. The propensity to self-report is consistent with the trade-offs between the benefits (e.g., access to prospective investors) and costs (e.g., partial loss of trading …
What Do Management Earnings Forecasts Convey About The Macroeconomy?, Samuel B. Bonsall Iv, Zahn Bozanic, Paul E. Fischer
What Do Management Earnings Forecasts Convey About The Macroeconomy?, Samuel B. Bonsall Iv, Zahn Bozanic, Paul E. Fischer
Accounting Papers
We decompose quantitative management earnings forecasts into macroeconomic and firm-specific components to determine the extent to which voluntary disclosure provided by management has macroeconomic information content. We provide evidence that the forecasts of bellwether firms, which are defined as firms in which macroeconomic news explains the greatest amount of variation in the forecasts, provide timely information to the market about the macroeconomy when bundled with earnings announcements. Further, we show that bellwether firms provide timely information about both industry-specific events and broader economic events. Finally, we document that the macroeconomic news in individual forecasts is more pronounced for bad news …
The Effect Of Voluntary Disclosure On Firm Risk And Firm Value: Evidence From Management Earnings Forecasts, Stephen R. Foerster, Stephen G. Sapp, Yaqi Shi
The Effect Of Voluntary Disclosure On Firm Risk And Firm Value: Evidence From Management Earnings Forecasts, Stephen R. Foerster, Stephen G. Sapp, Yaqi Shi
Business Publications
This study investigates whether the voluntary disclosure of management earnings forecasts influences investors’ assessment of firm risk and firm value. We find a significant negative relationship between the issuance of management earnings forecasts and a variety of measures of firm risk (idiosyncratic risk, stock return volatility, beta, and bid-ask spreads), with more frequent, more precise and more accurate earnings forecasts further decreasing firm risk. Our results therefore suggest that information quality is an important determinant of both diversifiable risk and nondiversifiable systematic risk. We also demonstrate that management earnings forecasts are positively associated with firm value as captured by Tobin’s …
The Opportunistic Reporting Of Material Events And The Apparent Misconception Of Investors' Reaction, Dan Segal, Benjamin Segal
The Opportunistic Reporting Of Material Events And The Apparent Misconception Of Investors' Reaction, Dan Segal, Benjamin Segal
Research Collection School Of Accountancy
Using a comprehensive sample of non-earnings 8-K filings from 1996 to 2011, we examine whether firms engage in opportunistic reporting of mandatory and voluntary news. We find strong evidence of opportunistic reporting of negative news, especially among public firms. Public firms are more likely to delay disclosure of negative news, report negative news after trading hours, and report on the last day of the week. We also find evidence of opportunistic bundling of news. Our findings support the notion that managers engage in strategic disclosure by delaying or obfuscating negative news in order to mitigate the potential market reaction. Factors …
Are All Management Earnings Forecasts Created Equal? Expectations Management Versus Communication, Yongtae Kim, Myung Seok Park
Are All Management Earnings Forecasts Created Equal? Expectations Management Versus Communication, Yongtae Kim, Myung Seok Park
Accounting
Recent studies associate management earnings forecasts (MEFs) with expectations management. These studies, however, neither provide evidence on the extent and scope of expectations management through MEFs nor consider alternative incentives for issuing MEFs. Consequently, existing evidence does not help regulators assess whether MEFs effectively facilitate communication with investors. We investigate to what extent managers exploit their earnings forecasts as a tool of expectations management or as a communication device. By examining relations among MEFs, analysts' forecasts, and actual earnings, we classify MEFs into three incentive categories: (1) expectations management, (2) communication, and (3) other incentives. We find that a significant …
Mandatory Financial Reporting Environment And Voluntary Disclosure: Evidence From Mandatory Ifrs Adoption, Balakrishnan Karthik, Xi Li, Holly Yang
Mandatory Financial Reporting Environment And Voluntary Disclosure: Evidence From Mandatory Ifrs Adoption, Balakrishnan Karthik, Xi Li, Holly Yang
Research Collection School Of Accountancy
Using the mandatory adoption of International Financial Reporting Standards (IFRS) as an exogenous improvement to mandatory financial reporting, we document evidence supporting a complementary effect between mandatory and voluntary disclosures. We find that firms in countries that adopted IFRS in 2005 experience an increase in both the likelihood and frequency of management earnings forecasts relative to firms in countries that did not mandate IFRS. We also find that the increase in management forecasts is higher in countries where prior local GAAP are more different from IFRS or legal enforcement is stronger. Consistent with the confirmatory role of mandatory reporting, we …
Investigating Presentational Change In Company Annual Reports: An Extension, Thomas Zeller, Brian Stanko, Han Jin
Investigating Presentational Change In Company Annual Reports: An Extension, Thomas Zeller, Brian Stanko, Han Jin
School of Business: Faculty Publications and Other Works
This study extends previous work with a seven year (2004-10) longitudinal investigation of annual report design for Standard & Poor’s (S&P) 500 companies. Prior research identifies the normalization of annual report design, with particular attention to voluntary disclosures, such as charts and graphs and other material designed to impress the shareholders and/or potential investors. Our findings show two distinct trends in annual report design. The first trend is to include Securities & Exchange Commission (SEC) Form 10-K, which includes a complete set of financial statements and extensive nonfinancial information in the annual report to the shareholders. The second trend is …
More Than Money: Corporate Social Performance And Reporting And The Effect On Economic Performance, Kimberly A. Zahller
More Than Money: Corporate Social Performance And Reporting And The Effect On Economic Performance, Kimberly A. Zahller
Electronic Theses and Dissertations
The three studies in this dissertation explore the relationship between Corporate Social Responsibility (CSR) and Corporate Financial Performance (CFP). CSR consists of social, ethical, and environmental performance dimensions that have not traditionally appeared in mandated financial reports and largely reflect societal expectations for corporate behavior beyond legal and regulatory constraints. CSR is reflected in both corporate actions (performance outcomes) and voluntary reporting (disclosure), and the two are not necessarily equivalent due to managerial discretion in disclosure. Although the mechanisms remain unclear, the general consensus is that there is a positive relationship between CSR and CFP. In considering the drivers and …
Consistent Earnings Growth And The Credibility Of Management Forecasts, Adam S. Koch, Jong Chool Park
Consistent Earnings Growth And The Credibility Of Management Forecasts, Adam S. Koch, Jong Chool Park
Accounting Faculty Publications
This paper examines the relation between a series of past earnings increases and the credibility of voluntary management earnings forecasts. We demonstrate that both analyst forecast revisions and stock price reactions around management earnings forecasts that contain good news are more pronounced when the firm has posted a string of recent earnings increases. These results are consistent with our primary hypothesis that voluntary management earnings forecasts are more believable when they are made by firms with a history of consistent growth in earnings. This effect is more pronounced when firms are not widely followed by analysts. Additional analysis suggests that …
Bankruptcy Probability Changes And The Differential Informativeness Of Bond Upgrades And Downgrades, Yongtae Kim, Sandeep Nabar
Bankruptcy Probability Changes And The Differential Informativeness Of Bond Upgrades And Downgrades, Yongtae Kim, Sandeep Nabar
Accounting
Prior studies have found that stock returns around announcements of bond upgrades are insignificant, but that stock prices respond negatively to announcements of bond downgrades. This asymmetric stock market reaction suggests either that bond downgrades are timelier than upgrades, or that voluntary disclosures by managers preempt upgrades but not downgrades. This study investigates these conjectures by examining changes in firms' probabilities of bankruptcy (assessed using bankruptcy prediction models) and voluntary disclosure activity around rating change announcements. The results indicate that the assessed probability of bankruptcy decreases before bond upgrades, but not after. By contrast, the assessed probability of bankruptcy increases …
The Impact Of Voluntary Corporate Disclosures On The Ex-Ante Cost Of Capital For Swiss Firms, Luzi Hail
The Impact Of Voluntary Corporate Disclosures On The Ex-Ante Cost Of Capital For Swiss Firms, Luzi Hail
Accounting Papers
The relationship between disclosure quality and cost of equity capital is an important topic in today's economy. In general, economic theory and anecdotal evidence suggest a negative association. Empirical work on this link, however, is confronted with major methodological drawbacks – neither disclosure level nor cost of capital can be observed directly – and has documented somewhat confounding results so far. Adopting a finite horizon version of the residual income model, I provide evidence on the nature of the above relationship and try to quantify the effect of a firm's voluntary disclosure policy on its implied cost of capital. Switzerland …