This study examines whether financial statement comparability plays a significant role in mitigating costs of capital in the market for seasoned equity offerings (SEOs). The FASB refers to comparability as a qualitative characteristic of financial reporting that enhances the decision-usefulness...

We investigate how the comparability of a company's financial statements is related to its cost of equity capital. Financial Accounting Standards Board's (FASB) Concept Statement No. 8 proposes that comparability is a key tenet of accounting because it allows users of financial statements to...