Article ID Journal Published Year Pages File Type
7356036 Journal of Accounting and Economics 2017 6 Pages PDF
Abstract
Shroff et al. (2017) examine whether a richer peer information environment reduces the cost of capital for firms with limited firm-specific information and whether this effect decreases as firm-specific information becomes more prevalent. Although much of the evidence supporting their hypotheses is based on a small highly idiosyncratic sample of firms issuing initial public debt, the authors provide corroborating evidence using samples of IPO and SEO firms. However, two research design choices make it difficult to discern the nature of the peer information that substitutes for firm information. Hence, the implications of the findings for disclosure regulation are limited.
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Social Sciences and Humanities Business, Management and Accounting Accounting
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