Risque d'estimation, coût du capital et communication des tests de dépréciation

The cost of equity capital is traditionally considered as an increasing function of the estimation risk – the risk of error regarding the distribution of a firm’s future cash flows (FCF). Under international GAAPs, IAS 36 “Impairment of assets” -based information disclosure conveys relevant information to market participants regarding the risk underlying their FCF. In a sample of top French listed companies over the period 2006-2008, we find a negative association between the cost of capital and the level of information disclosed regarding impairment of assets. In addition, when distinguishing prospective information from descriptive information, our results suggest that only prospective disclosures matter to investors’ decision-making.