In this paper we examine whether and how accounting information about a firm manifests in its cost of capital, despite … securities whose cash flows are correlated. We demonstrate that the quality of accounting information can influence the cost of … direction, but also derive conditions under which an increase in information quality leads to an unambiguous decline the cost of …

information asymmetry and improves market liquidity …

In this paper we examine whether and how accounting information about a firm manifests in its cost of capital, despite … securities whose cash flows are correlated. We demonstrate that the quality of accounting information can influence the cost of … direction, but also derive conditions under which an increase in information quality leads to an unambiguous decline the cost of …

In this paper, we establish a link between information quality, firms' capital investment decisions and their cost of … pricing equation that is equivalent to the CAPM. Using this characterization, we show that higher information quality leads to … a lower cost of capital via its effect on expected cash flows. Better information improves the coordination between …

information asymmetry and monitoring costs faced by foreign investors likely drive the results …