The DOI matches its Crossref record; 3 of the 3 references it cites were found in a registry or an index.
Information and the Cost of Capital
Open accessAbstract
We investigate the role of information in affecting a firm's cost of capital. We show that differences in the composition of information between public and private information affect the cost of capital, with investors demanding a higher return to hold stocks with greater private information. This higher return arises because informed investors are better able to shift their portfolio to incorporate new information, and uninformed investors are thus disadvantaged. In equilibrium, the quantity and quality of information affect asset prices. We show firms can influence their cost of capital by choosing features like accounting treatments, analyst coverage, and market microstructure.
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Cites
Common risk factors in the returns on stocks and bonds
Fama, E. F., & French, K. R. (1993) · Journal of Financial Economics · doi:10.1016/0304-405x(93)90023-5 · Cited by 25,754
Disclosure, Liquidity, and the Cost of Capital
DIAMOND, D. W., & VERRECCHIA, R. E. (1991) · The Journal of Finance · doi:10.1111/j.1540-6261.1991.tb04620.x · Cited by 3,836
On the impossibility of informationally efficient markets
Stiglitz, J. E., & Grossman, S. J. (1980) · Columbia University · doi:10.7916/d8765r99 · Cited by 3,645
Cited by
Accounting Information, Disclosure, and the Cost of Capital
LAMBERT, R., LEUZ, C., & VERRECCHIA, R. E. (2007) · Journal of Accounting Research · doi:10.1111/j.1475-679x.2007.00238.x · Cited by 2,586
Costs of Equity and Earnings Attributes
Francis, J., LaFond, R., Olsson, P. M., & Schipper, K. (2004) · The Accounting Review · doi:10.2308/accr.2004.79.4.967 · Cited by 2,377
Mandatory CSR and sustainability reporting: economic analysis and literature review
Christensen, H. B., Hail, L., & Leuz, C. (2021) · Review of Accounting Studies · doi:10.1007/s11142-021-09609-5 · Cited by 1,923
HAIL, L., & LEUZ, C. (2006) · Journal of Accounting Research · doi:10.1111/j.1475-679x.2006.00209.x · Cited by 1,371
Kothari, S. P., Li, X., & Short, J. E. (2009) · The Accounting Review · doi:10.2308/accr.2009.84.5.1639 · Cited by 1,019
Metadata
- Authors
- Easley, D., & O'hara, M.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 2004-08
- Volume
- 59
- Issue
- 4
- Pages
- 1553-1583
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W3125512896
- Cited by
- 3,038
- References
- 3
- FWCI
- 121.90
- Type
- journal article
- Language
- en
- Open access
- bronze
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- Easley, D., & O'hara, M. (2004). Information and the Cost of Capital. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.2004.00672.x
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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