Firm growth and disclosure: An empirical analysis

被引:76
作者
Khurana, Inder K. [1 ]
Pereira, Raynolde [1 ]
Martin, Xiumin [1 ]
机构
[1] Univ Missouri, Coll Business, Sch Accountancy, Columbia, MO 65211 USA
关键词
D O I
10.1017/S0022109000002106
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
Extant theoretical research posits that information asymmetry and agency issues affect the cost of external financing and hence impact the ability of firms to finance their growth opportunities. In contrast, the literature on disclosure policy posits that expanded and credible disclosure lowers the cost of external financing and improves a firm's ability to pursue potentially profitable projects. An empirical implication is that disclosure can help firms grow by relaxing external financing constraints, thereby allowing capital to flow to positive net present value projects. This paper empirically evaluates this prediction using firm-level data over an 11-year period. As anticipated by theory, we find a positive relation between firm disclosure policy and the externally financed growth rate, after controlling for other influences.
引用
收藏
页码:357 / 380
页数:24
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