Effect of mandatory interim reporting frequency on the cost of capital around the world
Fu, Ren Hui
Date of Issue2010
College of Business (Nanyang Business School)
This paper investigates the effect of mandatory interim reporting frequency on the cost of capital, using data from 41 countries. We find that higher interim reporting frequency is reliably associated with lower cost of capital, after we control for firm-specific factors, country-specific factors, additional voluntary reporting, etc. In addition, we hypothesize and find that the cost of capital benefit of higher reporting frequency is more pronounced in countries with stronger legal institutions.