This paper deals with the impact of voluntary strategy disclosure in management reports on the cost of equity capital. Such an impact is not obvious, as investors might consider strategy information as “cheap talk” and therefore ignore it. We analyze a sample of 100 German listed firms from...

This study develops an empirical proxy for the quality of segment reporting from data in corporate annual reports, and provides evidence that financial markets price the quality of segment reporting as systematic (non-diversifiable) risk. Lower segment information quality is associated with...