Open AccessImpact of Corporate Disclosure on Cost of Equity Capital in Vietnam
Author(s) -
Dung Viet Nguyen,
Lan Thi Ngoc Nguyen
Publication year - 2017
Publication title -
international journal of financial research
Language(s) - English
Resource type - Journals
eISSN - 1923-4031
pISSN - 1923-4023
DOI - 10.5430/ijfr.v8n4p64
Subject(s) - residual income valuation , cost of capital , cost of equity , equity capital markets , equity (law) , valuation (finance) , business , equity risk , return on capital , economics , monetary economics , accounting , capital formation , financial capital , microeconomics , profit (economics) , political science , law
The objective of the paper is to test the impact of corporate disclosure on the cost of equity capital for firms listed on Vietnam’s stock market. We use the Botosan (1997) scoring methodology and the residual income valuation model to measure disclosure level and the implied cost of equity capital. Our findings suggest that, taking into account other determinants, disclosure has a significant reducing impact on the cost of equity capital.