Cited by 3,836Corporate Finance and GovernanceFinancial Markets and Investment StrategiesAuditing, Earnings Management, Governance

The DOI matches its Crossref record; 17 of the 17 references it cites were found in a registry or an index.

Disclosure, Liquidity, and the Cost of Capital

DIAMOND, DOUGLAS W., VERRECCHIA, ROBERT E.·1991·The Journal of Finance

DOI 10.1111/j.1540-6261.1991.tb04620.x

Open this paper in CoChat — free account

Abstract

This paper shows that revealing public information to reduce information asymmetry can reduce a firm's cost of capital by attracting increased demand from large investors due to increased liquidity of its securities. Large firms will disclose more information since they benefit most. Disclosure also reduces the risk bearing capacity available through market makers. If initial information asymmetry is large, reducing it will increase the current price of the security. However, the maximum current price occurs with some asymmetry of information: further reduction of information asymmetry accentuates the undesirable effects of exit from market making.

Integrity signals

Registry

Crossref · 10.1111/j.1540-6261.1991.tb04620.x

Cites

17 of 17 references verified0 citation errors · 0 not checkable

Statistics

Recomputing p-values needs the paper’s full text.

Claims the paper makes

This paper’s full text isn’t openly available, so its claims and self-check weren’t run. The registry and citation checks still apply.

Claims other papers make about this one

Each is checked against this paper’s own text: does it say what the citing paper says it does?

Continuous Auctions and Insider Trading
Kyle, A. S. (1985) · Econometrica · doi:10.2307/1913210 · Cited by 10,145
Bid, ask and transaction prices in a specialist market with heterogeneously informed traders
Glosten, L. R., & Milgrom, P. (1985) · Journal of Financial Economics · doi:10.1016/0304-405x(85)90044-3 · Cited by 5,909
Asset pricing and the bid-ask spread
Amihud, Y., & Mendelson, H. (1986) · Journal of Financial Economics · doi:10.1016/0304-405x(86)90065-6 · Cited by 5,090
Moral Hazard in Teams
Holmstrom, B. R. (1982) · The Bell Journal of Economics · doi:10.2307/3003457 · Cited by 4,928
A Theory of Intraday Patterns: Volume and Price Variability
Admati, A. R., & Pfleiderer, P. (1988) · Review of Financial Studies · doi:10.1093/rfs/1.1.3 · Cited by 3,282
Liquidity and Market Structure
Grossman, S. J., & Miller, M. H. (1988) · The Journal of Finance · doi:10.1111/j.1540-6261.1988.tb04594.x · Cited by 1,578
Optimal dealer pricing under transactions and return uncertainty
Ho, T., & Stoll, H. R. (1981) · Journal of Financial Economics · doi:10.1016/0304-405x(81)90020-9 · Cited by 1,336
Optimal Release of Information By Firms
Diamond, D. W. (1985) · The Journal of Finance · doi:10.1111/j.1540-6261.1985.tb02364.x · Cited by 1,106
Self-citation
Information and Volatility: The No-Arbitrage Martingale Approach to Timing and Resolution Irrelevancy
Ross, S. A. (1989) · The Journal of Finance · doi:10.1111/j.1540-6261.1989.tb02401.x · Cited by 1,047
Information aggregation in a noisy rational expectations economy
Diamond, D. W., & Verrecchia, R. E. (1981) · Journal of Financial Economics · doi:10.1016/0304-405x(81)90026-x · Cited by 1,042
Self-citation

Show all 16 references

Research works printed but not linked: 2

Brady Commission, 1988, Report of the Presidential Task Force on Market Mechanisms
New York Stock Exchange, 1990, Market Volatility and Investor Confidence

Sorted by citations

Items 101–200 of 1,001

Banks as Secret Keepers
Dang, T. V., Gorton, G., Holmstrom, B. R., & Ordoñez, G. L. (2014) · American Economic Review · doi:10.1257/aer.20140782 · Cited by 390
Do Firms Strategically Disseminate? Evidence from Corporate Use of Social Media
Jung, M. J., Naughton, J. P., Tahoun, A., & Wang, C. (2017) · The Accounting Review · doi:10.2308/accr-51906 · Cited by 380
Women on boards, sustainability reporting and firm performance
Arayssi, M., Dah, M. A., & Jizi, M. I. (2016) · Sustainability Accounting Management and Policy Journal · doi:10.1108/sampj-07-2015-0055 · Cited by 403
Transparency and firm innovation
Zhong, R. (2018) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2018.02.001 · Cited by 372
The role of dynamic renegotiation and asymmetric information in financial contracting
Roberts, M. R. (2014) · Journal of Financial Economics · doi:10.1016/j.jfineco.2014.11.013 · Cited by 372
Voluntary Audits and the Cost of Debt Capital for Privately Held Firms: Korean Evidence*
Kim, J., Simunic, D. A., Stein, M. T., & Yi, C. H. (2010) · Contemporary Accounting Research · doi:10.1111/j.1911-3846.2010.01054.x · Cited by 363
Does Silence Speak? An Empirical Analysis of Disclosure Choices During Conference Calls
Hollander, S., Pronk, M., & Roelofsen, E. (2010) · Journal of Accounting Research · doi:10.1111/j.1475-679x.2010.00365.x · Cited by 362
Direct and Mediated Associations among Earnings Quality, Information Asymmetry, and the Cost of Equity
Bhattacharya, N., Ecker, F., Olsson, P. M., & Schipper, K. (2011) · The Accounting Review · doi:10.2308/accr-10200 · Cited by 360
Internal control over financial reporting and managerial rent extraction: Evidence from the profitability of insider trading
Skaife, H. A., Veenman, D., & Wangerin, D. D. (2012) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2012.07.005 · Cited by 366
Corporate social responsibility and the cost of corporate bonds
Ge, W., & Liu, M. (2012) · Journal of Accounting and Public Policy · doi:10.1016/j.jaccpubpol.2015.05.008 · Cited by 381
International Financial Reporting Standards and the quality of financial statement information
Iatridis, G. (2010) · International Review of Financial Analysis · doi:10.1016/j.irfa.2010.02.004 · Cited by 319
Why Do Managers Explain Their Earnings Forecasts?
Baginski, S. P., Hassell, J. M., & Kimbrough, M. D. (2004) · Journal of Accounting Research · doi:10.1111/j.1475-679x.2004.00127.x · Cited by 334
Measuring Accounting Reporting Complexity with XBRL
Hoitash, R., & Hoitash, U. (2017) · The Accounting Review · doi:10.2308/accr-51762 · Cited by 332
Evidence of assurance enhancing the quality of voluntary environmental disclosures: an empirical analysis
Moroney, R. A., Windsor, C., & Aw, Y. T. (2011) · Accounting and Finance · doi:10.1111/j.1467-629x.2011.00413.x · Cited by 330
Consolidation, Fragmentation, and the Disclosure of Trading Information
Madhavan, A. (1995) · Review of Financial Studies · doi:10.1093/rfs/8.3.579 · Cited by 328
Good disclosure, bad disclosure
Itay Goldstein, B., & Yang, L. (2018) · Journal of Financial Economics · doi:10.1016/j.jfineco.2018.08.004 · Cited by 328
Financial statement comparability and credit risk
Kim, S., Kraft, P., & Ryan, S. G. (2013) · Review of Accounting Studies · doi:10.1007/s11142-013-9233-z · Cited by 327
Redacted Disclosure
Verrecchia, R. E., & Weber, J. P. (2006) · Journal of Accounting Research · doi:10.1111/j.1475-679x.2006.00216.x · Cited by 326
Self-citation
Analyst Coverage and the Cost of Raising Equity Capital: Evidence from Underpricing of Seasoned Equity Offerings*
Bowen, R. M., Chen, X., & Cheng, Q. (2008) · Contemporary Accounting Research · doi:10.1506/car.25.3.1 · Cited by 324
The Influence of Family Ownership on the Quality of Accounting Information
Cascino, S., Pugliese, A., Mussolino, D., & Sansone, C. (2010) · Family Business Review · doi:10.1177/0894486510374302 · Cited by 321
Disclosure and the cost of capital: what do we know?
Botosan, C. A. (2006) · Accounting and Business Research · doi:10.1080/00014788.2006.9730042 · Cited by 312
Firm diversification and asymmetric information: evidence from analysts' forecasts and earnings announcements
Thomas, S. (2002) · Journal of Financial Economics · doi:10.1016/s0304-405x(02)00129-0 · Cited by 312
Disclosure of Intended Use of Proceeds and Underpricing in Initial Public Offerings
Leone, A. J., Rock, S., & Willenborg, M. (2007) · Journal of Accounting Research · doi:10.1111/j.1475-679x.2007.00229.x · Cited by 312
A Real Effects Perspective to Accounting Measurement and Disclosure: Implications and Insights for Future Research
Kanodia, C., & Sapra, H. (2016) · Journal of Accounting Research · doi:10.1111/1475-679x.12109 · Cited by 303
The Impact of Better Corporate Social Responsibility Disclosure on the Cost of Equity Capital
Reverte, C. (2011) · Corporate Social Responsibility and Environmental Management · doi:10.1002/csr.273 · Cited by 320
Disclosure frequency and earnings management☆
JO, H., & Kim, Y. (2007) · Journal of Financial Economics · doi:10.1016/j.jfineco.2006.03.007 · Cited by 300
Disclosure incentives when competing firms have common ownership
Park, J., Sani, J., Shroff, N., & White, H. D. (2019) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2019.02.001 · Cited by 300
Product market power, industry structure, and corporate earnings management
Datta, S., Iskandar‐Datta, M. E., & Singh, V. (2013) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2013.03.012 · Cited by 293
Financial reporting frequency, information asymmetry, and the cost of equity
Fu, R., Kraft, A. G., & Zhang, H. (2012) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2012.07.003 · Cited by 291
Frequent Financial Reporting and Managerial Myopia
Kraft, A. G., Vashishtha, R., & Venkatachalam, M. (2017) · The Accounting Review · doi:10.2308/accr-51838 · Cited by 290
Impact of the Institutional Macro Context on the Voluntary Disclosure of CSR Information
Sánchez, I., Cuadrado‐Ballesteros, B., & Aceituno, J. V. F. (2015) · Long Range Planning · doi:10.1016/j.lrp.2015.02.004 · Cited by 288
Monitoring and corporate disclosure: Evidence from a natural experiment
Irani, R. M., & Oesch, D. (2013) · Journal of Financial Economics · doi:10.1016/j.jfineco.2013.02.021 · Cited by 288
Corporate Governance, Risk Disclosure Practices, and Market Liquidity: Comparative Evidence from the UK and I taly
Elshandidy, T., & Neri, L. (2014) · Corporate Governance An International Review · doi:10.1111/corg.12095 · Cited by 301
Capital market effects of media synthesis and dissemination: evidence from robo-journalism
Blankespoor, E., deHaan, E., & Zhu, C. (2017) · Review of Accounting Studies · doi:10.1007/s11142-017-9422-2 · Cited by 291
Corporate Governance and the Cost of Equity CapitalPreprint
Skaife, H. A., Collins, D. W., & LaFond, R. (2005) · SSRN Electronic Journal · doi:10.2139/ssrn.639681 · Cited by 286
Information asymmetry and the value of cash
Drobetz, W., Grüninger, M. C., & Hirschvogl, S. (2010) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2010.02.002 · Cited by 293
Voluntary Disclosure and Information Asymmetry: Evidence from the 2005 Securities Offering Reform
Shroff, N., Sun, A. X., White, H. D., & Zhang, W. (2013) · Journal of Accounting Research · doi:10.1111/1475-679x.12022 · Cited by 278
Financial Reporting Transparency
Barth, M. E., & Schipper, K. (2008) · Journal of Accounting Auditing & Finance · doi:10.1177/0148558x0802300203 · Cited by 277
Embedding sustainability in risk management: The impact of environmental, social, and governance ratings on corporate financial risk
Landi, G. C., Iandolo, F., Renzi, A., & Rey, A. (2022) · Corporate Social Responsibility and Environmental Management · doi:10.1002/csr.2256 · Cited by 300
Does the Identity of Engagement Partners Matter? An Analysis of Audit Partner Reporting Decisions
Knechel, W. R., Vanstraelen, A., & Zerni, M. (2014) · Contemporary Accounting Research · doi:10.1111/1911-3846.12113 · Cited by 273
Determinants and Economic Consequences of Non-financial Disclosure Quality
Gao, F., Dong, Y., Ni, C., & Fu, R. (2015) · European Accounting Review · doi:10.1080/09638180.2015.1013049 · Cited by 289
The Impact of Information Processing Costs on Firm Disclosure Choice: Evidence from the XBRL Mandate
Blankespoor, E. (2019) · Journal of Accounting Research · doi:10.1111/1475-679x.12268 · Cited by 283
ESG Disclosure, REIT Debt Financing and Firm Value
Feng, Z., & Wu, Z. (2021) · The Journal of Real Estate Finance and Economics · doi:10.1007/s11146-021-09857-x · Cited by 272
Impact of ESG disclosure and financial reporting quality on investment efficiency
Ellili, N. O. D. (2022) · Corporate Governance · doi:10.1108/cg-06-2021-0209 · Cited by 271
Audit Committee Characteristics and the Perceived Quality of Financial Reporting: An Empirical AnalysisPreprint
Felo, A. J., Krishnamurthy, S., & Solieri, S. A. (2003) · SSRN Electronic Journal · doi:10.2139/ssrn.401240 · Cited by 271
Peer Effects in Corporate Disclosure Decisions
Seo, H. (2016) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2020.101364 · Cited by 270
Initial evidence on the market impact of the XBRL mandate
Blankespoor, E., Miller, B. P., & White, H. D. (2014) · Review of Accounting Studies · doi:10.1007/s11142-013-9273-4 · Cited by 273
Do Markets Punish or Reward Corporate Social Responsibility Decoupling?
Sánchez, I., Hussain, N., Khan, S. A., & Martínez‐Ferrero, J. (2020) · Business & Society · doi:10.1177/0007650319898839 · Cited by 265
Disclosure quality and earnings management
Lobo, G. J., & Zhou, J. T. (2001) · Asia-Pacific Journal of Accounting & Economics · doi:10.1080/16081625.2001.10510584 · Cited by 263
Voluntary forward-looking statements driven by corporate governance and their value relevance
Wang, M., & Hussainey, K. (2013) · Journal of Accounting and Public Policy · doi:10.1016/j.jaccpubpol.2013.02.009 · Cited by 262
The explanatory factors of intellectual capital disclosure to financial analysts
García‐Meca, E., Oller, I. M. P., Jorge, M. L., & Martínez, I. (2005) · European Accounting Review · doi:10.1080/0963818042000279713 · Cited by 261
Uncovering Hedge Fund Skill from the Portfolio Holdings They Hide
Agarwal, V., Jiang, W., Tang, Y., & Yang, B. (2012) · The Journal of Finance · doi:10.1111/jofi.12012 · Cited by 262
The Association of Board Independence and Ownership Concentration with Voluntary Disclosure: A Meta-analysis
García‐Meca, E., & Sánchez‐Ballesta, J. P. (2010) · European Accounting Review · doi:10.1080/09638180.2010.496979 · Cited by 257
Liquidity and Financial Market Runs
Bernardo, A. E., & Welch, I. (2004) · The Quarterly Journal of Economics · doi:10.1162/003355304772839542 · Cited by 257
Perceived competition, profitability and the withholding of information about sales and the cost of sales
Dedman, E., & Lennox, C. S. (2009) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2009.07.003 · Cited by 256
ETF Activity and Informational Efficiency of Underlying Securities
Glosten, L. R., Nallareddy, S., & Zou, Y. (2016) · Management Science · doi:10.1287/mnsc.2019.3427 · Cited by 256
Intellectual capital, management accounting practices and corporate performance
Tayles, M. E., Pike, R. H., & Sofian, S. B. (2007) · Accounting Auditing & Accountability Journal · doi:10.1108/09513570710762575 · Cited by 255
Market Responses to Firms' Voluntary Climate Change Information Disclosure and Carbon Communication
Lee, S., Park, Y., & Klassen, R. D. (2013) · Corporate Social Responsibility and Environmental Management · doi:10.1002/csr.1321 · Cited by 252
The Role of Information Precision in Determining the Cost of Equity Capital
Botosan, C. A., Plumlee, M., & Xie, Y. (2004) · Review of Accounting Studies · doi:10.1023/b:rast.0000028188.71604.0a · Cited by 253
Disclosure Policy and Market Liquidity: Impact of Depth Quotes and Order Sizes*
Heflin, F. L., Shaw, K. W., & Wild, J. J. (2005) · Contemporary Accounting Research · doi:10.1506/eetm-falm-4kdd-9dt9 · Cited by 250
Does stock price informativeness affect labor investment efficiency?
Ben‐Nasr, H., & Alshwer, A. A. (2016) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2016.01.012 · Cited by 254
‘Relationship Banking and SMEs: A Theoretical Analysis’
Baas, T., & Schrooten, M. (2006) · Small Business Economics · doi:10.1007/s11187-006-0018-7 · Cited by 250
A transparency Disclosure Index measuring disclosures: Chinese listed companies
Cheung, Y., Jiang, P. Y., & Tan, W. (2010) · Journal of Accounting and Public Policy · doi:10.1016/j.jaccpubpol.2010.02.001 · Cited by 246
The Cross-Section of Expected Trading Activity
Chordia, T., Huh, S.-W., & Subrahmanyam, A. (2006) · Review of Financial Studies · doi:10.1093/rfs/hhl014 · Cited by 248
Does XBRL adoption reduce information asymmetry?
Yoon, H.-W., Zo, H., & Ciganek, A. P. (2010) · Journal of Business Research · doi:10.1016/j.jbusres.2010.01.008 · Cited by 243
How Frequent Financial Reporting Can Cause Managerial Short‐Termism: An Analysis of the Costs and Benefits of Increasing Reporting Frequency
Gigler, F., Kanodia, C., Sapra, H., & Venugopalan, R. (2014) · Journal of Accounting Research · doi:10.1111/1475-679x.12043 · Cited by 243
Revisiting the Vexing Question: Does Superior Corporate Social Performance Lead to Improved Financial Performance?
Lee, D. D., Faff, R. W., & Langfield‐Smith, K. (2009) · Australian Journal of Management · doi:10.1177/031289620903400103 · Cited by 258
Does gender diversity on corporate boards reduce information asymmetry in equity markets?
Abad, D., Lucas‐Pérez, M. E., Mínguez‐Vera, A., & Yagüe, J. (2017) · BRQ Business Research Quarterly · doi:10.1016/j.brq.2017.04.001 · Cited by 242
Non-GAAP Reporting: Evidence from Academia and Current Practice
Black, D. E., Christensen, T. E., Ciesielski, J. T., & Whipple, B. C. (2017) · Journal of Business Finance & Accounting · doi:10.1111/jbfa.12298 · Cited by 240
A Lobbying Approach to Evaluating the Sarbanes‐Oxley Act of 2002
Hochberg, Y. V., Sapienza, P., & Vissing‐Jørgensen, A. (2009) · Journal of Accounting Research · doi:10.1111/j.1475-679x.2009.00321.x · Cited by 238
Shall We Talk? The Role of Interactive Investor Platforms in Corporate Communication
Lee, C. M. C., & Zhong, Q. (2020) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2022.101524 · Cited by 240
Integrated Reporting and Stakeholder Engagement: The Effect on Information Asymmetry
Sánchez, I., & Gámez, L. C. N. (2017) · Corporate Social Responsibility and Environmental Management · doi:10.1002/csr.1415 · Cited by 235
Capital-Market Effects of Securities Regulation: Prior Conditions, Implementation, and Enforcement
Christensen, H. B., Hail, L., & Leuz, C. (2011) · National Bureau of Economic Research · doi:10.3386/w16737 · Cited by 233
Do banks value the eco-friendliness of firms in their corporate lending decision? Some empirical evidence
Nandy, M., & Lodh, S. (2012) · International Review of Financial Analysis · doi:10.1016/j.irfa.2012.06.008 · Cited by 241
Corporate Nonfinancial Disclosure Practices and Financial Analyst Forecast Ability Across Three European Countries
Vanstraelen, A., Zarzeski, M. T., & Robb, S. W. G. (2003) · Journal of International Financial Management and Accounting · doi:10.1111/1467-646x.00098 · Cited by 231
Company reputation and the cost of equity capital
Cao, Y., Myers, J. N., Myers, L. A., & Omer, T. C. (2014) · Review of Accounting Studies · doi:10.1007/s11142-014-9292-9 · Cited by 231
Insider and Liquidity Trading in Stock and Options Markets
Biais, B., & Hillion, P. (1994) · Review of Financial Studies · doi:10.1093/rfs/7.4.743 · Cited by 229
Intellectual capital disclosure in integrated reports: The effect on firm value
Salvi, A., Vitolla, F., Giakoumelou, A., Raimo, N., & Rubino, M. (2020) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2020.120228 · Cited by 249
The Effect of 10k Restatements on Firm Value, Information Asymmetries, and Investors' Reliance on EarningsPreprint
Anderson, K. L., & Yohn, T. L. (2002) · SSRN Electronic Journal · doi:10.2139/ssrn.332380 · Cited by 226
Private Earnings Guidance and Its Implications for Disclosure Regulation
Wang, I. Y. (2007) · The Accounting Review · doi:10.2308/accr.2007.82.5.1299 · Cited by 224
How to talk when a machine is listening: Corporate disclosure in the age of AI
Cao, S., Jiang, W., Yang, B., & Zhang, A. L. (2023) · The Review of Financial Studies · doi:10.1093/rfs/hhad021 · Cited by 222
The endogeneity bias in the relation between cost-of-debt capital and corporate disclosure policy
Nikolaev, V. V., & van Lent, L. (2005) · European Accounting Review · doi:10.1080/09638180500204624 · Cited by 222
The choice of equity-selling mechanisms
Wu, Y. (2004) · Journal of Financial Economics · doi:10.1016/j.jfineco.2003.08.003 · Cited by 221
Shaping Liquidity: On the Causal Effects of Voluntary Disclosure
Balakrishnan, K., Billings, M. B., Kelly, B., & Ljungqvist, A. P. (2013) · National Bureau of Economic Research · doi:10.3386/w18984 · Cited by 220
Corporate governance and information asymmetry between managers and investors
Cormier, D., Ledoux, M., MAGNAN, M. L., & Aerts, W. (2010) · Corporate Governance · doi:10.1108/14720701011085553 · Cited by 219
Employee welfare and stock price crash risk
Ben‐Nasr, H., & Ghouma, H. H. (2017) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2017.12.007 · Cited by 218
The effect of voluntary disclosure on stock liquidity: New evidence from index funds
Schoenfeld, J. (2016) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2016.10.007 · Cited by 216
Going Green: Market Reaction to CSR Newswire Releases
Griffin, P. A., & Sun, E. Y. (2012) · Journal of Accounting and Public Policy · doi:10.1016/j.jaccpubpol.2013.02.002 · Cited by 215
Annual report readability and the cost of equity capital
Rjiba, H., Saadi, S., Boubaker, S., & Ding, X. (2021) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2021.101902 · Cited by 225
The joint effects of materiality thresholds and voluntary disclosure incentives on firms’ disclosure decisions
Heitzman, S. M., Wasley, C. E., & Zimmerman, J. L. (2009) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2009.10.002 · Cited by 215
Adopting a Label: Heterogeneity in the Economic Consequences of IFRS Adoptions *Preprint
Daske, H., Hail, L., Leuz, C., & Verdi, R. S. (2007) · SSRN Electronic Journal · Cited by 215
Analyst Following and Credit Ratings*
Cheng, M., & Subramanyam, K. R. (2008) · Contemporary Accounting Research · doi:10.1506/car.25.4.3 · Cited by 214
Informed and Strategic Order Flow in the Bond Markets
Pasquariello, P., & Vega, C. (2007) · Review of Financial Studies · doi:10.1093/rfs/hhm034 · Cited by 213
Intellectual capital disclosure, cost of finance and firm value
Orens, R., Aerts, W., & Lybaert, N. (2009) · Management Decision · doi:10.1108/00251740911004673 · Cited by 212
The informativeness of earnings and management's issuance of earnings forecasts
Lennox, C. S., & Park, C. W. (2006) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2006.05.001 · Cited by 211
Informational Feedback, Adverse Selection, and Optimal Disclosure Policy
Gao, P., & Liang, P. J. (2013) · Journal of Accounting Research · doi:10.1111/1475-679x.12019 · Cited by 209
Risk Committee, Firm Life Cycle, and Market Risk Disclosures
Al‐Hadi, A., Hasan, M. M., & Habib, A. (2015) · Corporate Governance An International Review · doi:10.1111/corg.12115 · Cited by 208
Board ownership, audit committees' effectiveness and corporate voluntary disclosures
Akhtaruddin, M., & Haron, H. B. (2010) · Asian Review of Accounting · doi:10.1108/13217341011046015 · Cited by 208
Information Risk and Fair Values: An Examination of Equity Betas
Riedl, E. J., & Serafeim, G. (2011) · Journal of Accounting Research · doi:10.1111/j.1475-679x.2011.00408.x · Cited by 207
The Causal Link between Sustainable Disclosure and Information Asymmetry: The Moderating Role of the Stakeholder Protection Context
Martínez‐Ferrero, J., Ruiz‐Cano, D., & Sánchez, I. (2015) · Corporate Social Responsibility and Environmental Management · doi:10.1002/csr.1379 · Cited by 207

Authors: DIAMOND, D. W., & VERRECCHIA, R. E.
Affiliations: Georgetown University (US)
ORCID: DIAMOND, DOUGLAS W.
VERRECCHIA, ROBERT E.
Venue: The Journal of Finance
Publisher: Wiley
Published: 1991-09
Volume: 46
Issue: 4
Pages: 1325-1359
ISSN: 0022-1082 (ISSN-L)
1540-6261
DOI: 10.1111/j.1540-6261.1991.tb04620.x
OpenAlex: W2154187126
Cited by: 3,836
References: 16
Citations by year: 2026: 219 · 2025: 232 · 2024: 228 · 2023: 188 · 2022: 198 · 2021: 215 · 2020: 201 · 2019: 165 · 2018: 189 · 2017: 199 · 2016: 181 · 2015: 190 · 2014: 198 · 2013: 182 · 2012: 157
FWCI: 13.32
Type: journal article
Language: en
Open access: closed
Licence: onlinelibrary.wiley.com/termsAndConditions#vor (vor, 7547 d)
Locations: The Journal of Finance (publishedVersion)
RePEc: Research Papers in Economics (submittedVersion)
Topics: Social Sciences › Economics, Econometrics and Finance › Finance › Corporate Finance and Governance
Social Sciences › Economics, Econometrics and Finance › Finance › Financial Markets and Investment Strategies
Social Sciences › Business, Management and Accounting › Accounting › Auditing, Earnings Management, Governance
Keywords: information disclosure, information asymmetry, cost of capital, liquidity, large investors, market makers, security prices, firm size, corporate finance

About these checks

Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.

Statistics and arithmetic are recomputed, not judged.

Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.

What counts as a claim ›How we measure confidence ›How we check this ›

Are you an author, or do you see a problem with this page? Request a review

Disclosure, Liquidity, and the Cost of Capital

Abstract

Overview

Integrity signals

Verification

Claims the paper makes

Claims other papers make about this one

Citations

Cites

Cited by

Related

Metadata

Record

About these checks