Voluntary disclosure of investment forecasts and the cost of capital: evidence from the treatment effect estimates model

Yoshinori Shimada

Asia-Pacific Journal of Accounting & Economics, 2020, vol. 27, issue 4, 472-489

Abstract: This study examines the economic consequences of voluntary disclosures for investment forecasts. Using Japanese data, I examine whether voluntary disclosure of management forecasts of capital investments and research and development investments is related to the cost of capital in the same and subsequent years. The results indicate that firms that disclose investment forecasts realize a greater reduction in the cost of capital in the same and subsequent accounting periods than firms that do not disclose. Another finding is that the initial investment forecast disclosures affect the reduction in the cost of capital in the year subsequent to the initial disclosure. This suggests that information effects of investment forecasts on the cost of capital appear over time.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/16081625.2018.1517050 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:raaexx:v:27:y:2020:i:4:p:472-489

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/raae20

DOI: 10.1080/16081625.2018.1517050

Access Statistics for this article

Asia-Pacific Journal of Accounting & Economics is currently edited by Yin-Wong Cheung, Hong Hwang, Jeong-Bon Kim, Shu-Hsing Li and Suresh Radhakrishnan

More articles in Asia-Pacific Journal of Accounting & Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().