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Erschienen in:

2016 | OriginalPaper | Buchkapitel

13. The Relationship Between Integrated Reporting and Cost of Capital

verfasst von : Nelson Carvalho, Fernando Dal-Ri Murcia

Erschienen in: Integrated Reporting

Verlag: Palgrave Macmillan UK

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Abstract

In this chapter, we address the relationship between Integrated Reporting (IR) and cost of capital. By examining the existing accounting, finance and sustainability literature we argue that there is a negative relationship between IR and the cost of capital, i.e. IR should lower the company’s cost of debt and equity in the medium and long terms. In our view, these effects derive from two main factors: (i) the adoption of a sustainable business model due to integrated thinking and (ii) an information asymmetry reduction caused by greater transparency, allowing more informed forecasts both leading to positive returns to investors and creditors in the long term.

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Vorheriges Kapitel The Integrated Reporting and the Conference Calls Content

Nächstes Kapitel Assurance and Other Credibility Enhancing Mechanisms for Integrated Reporting

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Titel: The Relationship Between Integrated Reporting and Cost of Capital
verfasst von: Nelson Carvalho
Fernando Dal-Ri Murcia
Verlag: Palgrave Macmillan UK
Buch: Integrated Reporting
Print ISBN: 978-1-137-55148-1

Electronic ISBN: 978-1-137-55149-8

Copyright-Jahr: 2016
DOI: https://doi.org/10.1057/978-1-137-55149-8_13