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Growing Science » Management Science Letters » Earnings announcement lag and non-mandatory disclosure impact on the cost of debt: Hong Kong empirical evidence

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Management Science Letters

ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print)
Quarterly Publication
Volume 5 Issue 2 pp. 223-234 , 2015

Earnings announcement lag and non-mandatory disclosure impact on the cost of debt: Hong Kong empirical evidence Pages 223-234 Right click to download the paper Download PDF

Authors: Achraf Guidara, Imen Achek

Keywords: Cost of debt, Earning announcement lag, Extent of voluntary disclosure, Hong Kong

Abstract: This paper examines the association between voluntary disclosure, earnings announcement lag and the cost of debt in Hong Kong. The research sample consists of 20 listed companies in the Hong Kong Stock exchange over the period spanning from 2008 to 2011. A disclosure checklist is used to measure the extent of voluntary disclosure in companies ‘annual reports. Earnings announcement lag is proxied by the difference between the end of fiscal year and the publication date of financial statements. Results of this study confirm that voluntary disclosure and earnings announcements lag reduce the cost of debt in Hong Kong. These findings suggest that voluntary disclosures play an essential role in reducing cost of debt in Hong Kong context, and managers tend to disclose in early manner to reduce the information asymmetry between their firm and creditors. These findings may have policy implications for managers since they demonstrate that the extent of voluntary and timely disclosures affect the cost of debt.

How to cite this paper
Guidara, A & Achek, I. (2015). Earnings announcement lag and non-mandatory disclosure impact on the cost of debt: Hong Kong empirical evidence.Management Science Letters , 5(2), 223-234.

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Journal: Management Science Letters | Year: 2015 | Volume: 5 | Issue: 2 | Views: 2368 | Reviews: 0

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