Accounting Information, Disclosure, and the Cost of Capital

By Richard A. Lambert, Christian Leuz, Robert E. Verrecchia. 2007

2,350 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/347b98bb8e697d85cba0eddd843924e7342334e4

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Citations in the corpus

Earnings management and market liquidity (2012, background): “Kim and Verrecchia (2001) and Lambert et al. (2007) establish a theoretical link between the quality of a firm’s accounting information and its cost of capital.”
Voluntary Audits Versus Mandatory Audits (2011, background): “Given that the private and social values of information can diverge, regulation is frequently justified on the grounds that this induces positive externalities (e.g., Dye 1990; Admati and Pfleiderer 2000; Lambert et al. 2007).”
The effect of corporate tax avoidance on the cost of equity (2013, methodology): “Applying the Lambert et al. (2007) derivation of the cost of capital to our setting, we argue that tax avoidance can affect the cost of capital via its effect on the firm’s expected future cash flow and its effect on the variance of the firm’s own cash flows as well as the covariance with other…”
Accounting Disclosure and Real Effects (2007, methodology): “Similarly, using the insights provided by the Capital Asset Pricing Model (CAPM), Beaver (1972), Gonedes (1976), and more recently Lambert et al. (2007) view accounting signals as providing information on the true systematic risk of securities, i.e., on the covariance of a security’s returns with…”
Accounting Quality, Stock Price Delay and Future Stock Returns (2013, unknown): “However, a substantial body of research studies information imperfections such as asymmetric information and incomplete information (e.g., Barry and Brown, 1984; Merton, 1987; Easley et al., 2002; Hou and Moskowitz, 2005; Lambert et al., 2007).”
The impacts of product market competition on the quantity and quality of voluntary disclosures (2010, background): “Prior literature suggests that disclosing more public information reduces a firm’s cost of capital (Easley and O’Hara 2004; Lambert et al. 2007 ).”
Implications for GAAP from an Analysis of Positive Research in Accounting (2010, background): “Leftwich (1980) discusses fallacies in market failure justifications commonly used in accounting.”
Agency Costs of Free Cash Flow and the Effect of Shareholder Rights on the Implied Cost of Equity Capital (2010, unknown): “, Lombardo and Pagano (2002a), Merton (1987)) suggest that shareholder rights directly affect the cost of equity and therefore should be directly included in equation (1).”
A theory of voluntary disclosure and cost of capital (2013, background): “…on information about the idiosyncratic component of firm’s cash flows, and exclude any information about the systematic component that would clearly work to realize some of the systematic risk and thus reduce risk premia (Hughes, Liu, and Liu (2007), Lambert, Leuz, and Verrecchia (2007, 2008)).”
Challenges and opportunities in disclosure research—A discussion of 'the financial reporting environment: Review of the recent literature' $ (2011, background): “Positive tone does not predict positive future performance for the three commonly used dictionaries (Diction, General Inquirer, and the Linguistic Inquiry and Word Count), raising the question of how well these general dictionaries work for analyzing the specialized language in corporate filings. Ro”
Directors׳ and officers׳ liability insurance and the cost of equity☆ (2016, background): “Lambert et al. (2007) extend the literature on estimation risk (e.g., Coles et al., 1995) and directly examine the effect of accounting information on the cost of capital within a CAPM framework.”
The European IFRS experiment: objectives, research challenges and some early evidence (2011, background): “In light of the analysis in Lambert et al. (2007), it is therefore interesting that Botma and Joos (2010) find evidence that expropriation risk facing institutional shareholders falls because IFRS adoption under strong enforcement changes the relation between family/management and institutional…”
Does Mandatory Adoption of International Financial Reporting Standards in the European Union Reduce the Cost of Equity Capital (2009, unknown): “, Ashbaugh and Pincus 2001) and that increased disclosure reduces the cost of equity capital (e.g., Botosan 1997; Easley and O’Hara 2004; Lambert et al. 2007).”
Financial Reporting Frequency, Information Asymmetry, and the Cost of Equity (2012, unknown): “In addition, Hughes et al. (2007) and Lambert et al. (2007) consider the force of diversification and suggest that disclosures have no impact on the cost of equity if they convey only information on diversifiable risks.”
Financial Reporting Quality and Labor Investment Efficiency (2014, unknown): “mitigate such market imperfections and improve investment efficiency (e.g., Bushman and Smith 2001; Healy and Palepu 2001; Lambert et al. 2007).”
Cost of Capital Effects and Changes in Growth Expectations Around U.S. Cross-Listings (2009, unknown): “These information effects can reduce information asymmetries and lower firms’ cost of capital (Verrecchia, 2001; Lambert et al., 2007; Stulz, 2008).”