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The Relationship between Voluntary Disclosure, External Financing and Financial Status

Jankensgård, Håkan LU (2015) In Journal of Business Finance & Accounting 42(7-8). p.860-884
Abstract
Using unique Swedish disclosure data from 2007 to 2012, this paper reports three important sets of findings with regard to the relationship between firms' voluntary disclosure, external financing and financial status. First, financially strong firms disclose more than weaker ones. Second, firms that obtain new financing (equity or debt) disclose more than firms that do not. Third, the association between voluntary disclosure and financing events is stronger in financially weak firms. This last finding is new in the literature. Perhaps financially weak firms that obtain external funding have higher disclosure to counteract contracting and valuation problems in the financial markets.
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
voluntary disclosure, financial status, external financing, equity, issuance, debt overhang
in
Journal of Business Finance & Accounting
volume
42
issue
7-8
pages
860 - 884
publisher
Wiley-Blackwell
external identifiers
  • wos:000363343600003
  • scopus:84945441185
ISSN
0306-686X
DOI
10.1111/jbfa.12120
language
English
LU publication?
yes
id
e20c5a47-613e-4d36-b59e-d00fd3e9f3c3 (old id 8201590)
date added to LUP
2015-11-26 11:55:58
date last changed
2017-01-01 03:34:56
@article{e20c5a47-613e-4d36-b59e-d00fd3e9f3c3,
  abstract     = {Using unique Swedish disclosure data from 2007 to 2012, this paper reports three important sets of findings with regard to the relationship between firms' voluntary disclosure, external financing and financial status. First, financially strong firms disclose more than weaker ones. Second, firms that obtain new financing (equity or debt) disclose more than firms that do not. Third, the association between voluntary disclosure and financing events is stronger in financially weak firms. This last finding is new in the literature. Perhaps financially weak firms that obtain external funding have higher disclosure to counteract contracting and valuation problems in the financial markets.},
  author       = {Jankensgård, Håkan},
  issn         = {0306-686X},
  keyword      = {voluntary disclosure,financial status,external financing,equity,issuance,debt overhang},
  language     = {eng},
  number       = {7-8},
  pages        = {860--884},
  publisher    = {Wiley-Blackwell},
  series       = {Journal of Business Finance & Accounting},
  title        = {The Relationship between Voluntary Disclosure, External Financing and Financial Status},
  url          = {http://dx.doi.org/10.1111/jbfa.12120},
  volume       = {42},
  year         = {2015},
}