Евдокимова Мария Сергеевна
The Impact of Non-Financial Information Disclosure on Cost of Capital
Стратегическое управление финансами фирмы
The paper provides wide literature review about non-financial information disclosure. Articles refer which incentives make company to issue voluntary prepared reports reflecting social, environmental and economic aspects. The relationships between board of directors’ characteristics and CSR disclosure is proved only in relation to women presence in board of directors’. After the decision to publish additional information the question about its quality is raised. To resolve it papers about non-financial assurance are included in the review. It was confirmed that presence of sustainability committee in company positively impacts on non-financial report assurance. And finally, to prove the CSR transparency value relevance literature and regression results related to reduction in cost of capital are presented. It was found that non-financial report issuing reduce company’s cost of debt, cost of equity and WACC. Were determined industries cost of equity and debt capital in which reduce after non-financial report issuing: energy, industrials, information technology, health care, industrials and materials. Moreover, it was revealed that companies issued report have lower cost of equity capital growth rate.