Disclosure Quality, the Cost of Capital and Strategic Correlation
We investigate the strategic role of correlation between disclosure error and payoff shock in affecting a firm’s cost of capital or share price. We show that the correlation affects the relationship between disclosure quality and the cost of capital or share price. The standard result where disclosu...
| Main Authors: | , |
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| Format: | Working Paper |
| Published: |
Centre for Research in Applied Economics
2014
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/47642 |