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Given the significant role of both integrated reporting and cost of capital in the survival and prosperity of a firm, it is essential to understand their relationship by investigating whether integrated reporting influences the cost of capital of a firm. This research paper aims to examine the impact of integrated reporting practice on the cost of capital of listed firms in sub-Saharan Africa (SSA).

The study covered a period of 10 years from 2009 to 2018. One hundred and forty-seven listed firms in 10 SSA countries were used for the study. The study employed panel data analysis and utilised a dynamic estimation technique called the generalised method of moments.

The evidence shows that integrated reporting has a negative relationship with cost of capital, indicating integrated reporting can reduce firms' cost of capital. The results further showed that social, governance and environmental disclosures all have negative relationships with cost of capital, suggesting that firms that make these disclosures would have a lower cost of capital. These results are consistent with signalling theory, which holds that firms send a positive signal to the market about their performance and prospects when they provide information relating to value creation, predominantly environmental, social and governance issues.

The major limitation of the study is the selection of only English-speaking countries. French-speaking countries may have a different reporting practice, hence a different effect on the cost of capital.

This study contributes to policy development on integrated reporting in SSA and informs key stakeholders involved in promoting and supporting the adoption of integrated reporting in Africa.

The findings from this paper consolidate existing research in integrated reporting and cost of capital by providing empirical evidence on the relationship between integrated reporting, its components and the cost of capital from emerging economies. This study contributes to the understanding of investors' reactions to integrated reporting. Further, it fills a gap in the non-availability of literature on the relative impact of the various components of integrated reporting.

The purpose of this paper is to explore the relationship between disclosure quality, measured by the readability of the board of directors’ report and cost of capital (CoC), and, second, attempt to investigate the moderating effect of earnings quality on the relationship between readability and CoC.

The sample includes the Egyptian EGX 100 companies, listed from 2013 to 2015, and the study runs two ordinary least square models to test the two main hypotheses. The study applies the LIX formula to calculate the readability level of board of director’ reports and uses the weighted average CoC to calculate CoC. Moreover, the performance-adjusted modified Jones model is used to measure earnings quality.

The results indicate that in the Egyptian context the readability of board of director’ reports does not impact on CoC. In addition, after moderating by earnings quality, there is a significant association between readability and CoC. The interaction between earnings quality and readability has a significant impact on CoC. This finding is consistent with the notion that, conditional on earnings quality, the benefits of easy writing style in the annual reports, prepared by the company’s managers, are reflected in the reduction of CoC.

Based on the limited literature relating to developing countries’ capital markets, this study contributes to the accounting literature by providing empirical evidence on the conditional effect of earnings quality and of the consequences of linguistics style in the emerging market.

This study aims to investigate not only the association between corporate environmental, social and governance (ESG) performance and the cost of capital (COC) but also its impact on the company’s idiosyncratic risk. Further, it highlights that companies could manage their risk through sustainability initiatives to achieve a cheaper cost of financing.

Using an extensive Australian sample for the 2007–2017 period from the Bloomberg database, this study conducts a panel (data) regression analysis to examine the impact of the corporate ESG performance disclosure score on the COC and idiosyncratic risk. The robustness of the findings is tested and confirmed in several ways, including a sensitivity test. Furthermore, the instrumental variable approach is used to address potential endogeneity issues.

A favourable association was found between a higher corporate ESG performance disclosure score and cheaper resources financing. The evidence also supports the mitigating impact of corporate ESG performance disclosure score on the company’s idiosyncratic risk as a strong complement for access to a cheaper source of funds. The findings strongly support both hypotheses of this study.

This study extends the current body of knowledge addressing these associations. Further studies should expand the investigation to non-listed or small and medium-sized companies. Additionally, future studies could contribute to the literature by including other moderating variables, such as a country’s cultural environment and diverse economic situations.

An extensive literature review suggests that this study, to the best of the authors’ knowledge, is the first that simultaneously evaluates the impact of corporate ESG performance disclosure on a company’s COC and idiosyncratic risk.

Describes the conceptual meaning of the cost of capital (COC) and relates its use of COC in decisions that add value to a company. Illustrations provide the basis for an intuitive feel of the crucial role of COC in the pursuit of generating value. Explains the meaning of true economic value added (TEVA) and relates TEVA to COC and economic returns. Relates COC to the value generating cycle of a firm. Supplements the conceptual and intuitive notions of COC with pragmatic guidelines useful to the practising manager. Capital and the employment of capital have an especially crucial role in emerging and transition economies. Outlines the vital nature of COC in these economies and in decision making. Addresses issues at a level appropriate for professional managers regardless of their area of expertise and functional assignment.

This article aims to investigate the impact of corporate governance (CG) mechanisms on cost of capital (COC) in Organisation for Economic Co-operation and Development (OECD) countries.

Companies from 34 OECD countries were used between 2010 and 2017. Multiple regression analysis techniques is used to examine the relationships. The findings are robust to alternative measures and endogeneities.

The results show that CG index and director ownership are statistically negatively related to COC. In contrast, the results show that block ownership is statistically related to COC.

This study extends, as well as contributes to the extant CG literature by offering new evidence on the effect of CG mechanisms on COC. The findings will help regulators and policymakers in the OECD countries in evaluating the adequacy of the current CG reforms to prevent management misconduct and scandals.

The purpose of this study is to investigate the impact of corporate governance mechanisms on the cost of capital in Organisation for Economic Co-operation and Development (OECD) countries.

A panel data of 240 companies from Anglo-American and European countries between 2010 and 2017 were used. The ordinary least-squares multiple regression analysis was used to examine the relationships. The results were also robust to alternative measures and endogeneities.

The results showed that the corporate governance index and director ownership were negatively related to the cost of capital. Moreover, the study also reports a positive correlation between block ownership and the cost of capital.

This study extended the corporate governance literature by offering new evidence on the effect of corporate governance mechanisms on the cost of capital. Our findings will help regulators and policymakers in the OECD countries to evaluate the adequacy of the current corporate governance reforms to prevent management misconduct and scandals.

This study aims to empirically examine environment, social, and governance (ESG) as an effective strategy to reduce major impediments for a corporation in the form of costs of capital (COC) and systematic risk, especially for emerging markets such as India.

A sample of 114 Indian firms from eight prominent industries based on Thomson Reuters classification (TRBC) are used in the study. A panel regression with industry-fixed effects is carried out to account for industry heterogeneity. For robustness, the authors also carry out a matched sample analysis.

The authors observe a negative and significant relationship between ESG performance with COC and systematic risk, respectively. For the pillar-wise analysis, the authors observe that only governance performance is negatively and significantly related to COC whereas the environmental and social performances are negative and insignificant. For ESG pillar level analysis for beta, the authors observe that all pillars are negative and significant, thus making a case for how firms can fine-tune their ESG strategies according to each pillar.

As the ESG concept is still in a very nascent stage, data availability is a definite challenge in India.

As ESG is increasingly becoming relevant for multiple stakeholders, this study aims to provide evidence that can potentially guide the regulators, practitioners, and academicians to address the contemporary needs of these stakeholders, while also doing good for the firm in the traditional sense.

The transition to a sustainable economy is a challenge for emerging economies, especially for a country like India where stakeholders are not only varied but also huge in number. With this study's contribution towards an incremental understanding of ESG, Indian regulators and policymakers can bring forward mandates as to ESG compliances that are rewarding for the firms and give them enough impetus towards complying with ESG norms.

The extant literature on ESG majorly discusses the relationship between ESG performance and financial performance. This study addresses the lacuna of the relationship of ESG with COC and beta in the Indian context.

To examine the impact of corporate governance on Cost of Capital (COC) and financial distress in the ASEAN countries.

We compiled a list of the 50 largest publicly listed firms by market capitalization in each of the following five East Asian countries, namely Malaysia, Singapore, Thailand, the Philippines, and Indonesia. Furthermore, we then divided the five countries into two distinctive categories – (i) Malaysia and Singapore (Common Law/strong legal protection countries) and (ii) Thailand, the Philippines, and Indonesia (Civil Law/weak legal protection countries). The annual data is collected for the time period ranging from 2006 to 2015, allowing a total observation of 1,317 firm years.

Overall, the paper supports the findings of many researchers that Board independence, promulgating good corporate governance, leads to better access to capital at lower cost, thus providing growth opportunities for ASEAN region. Taking lead from Simpson and Gleason (1999) and similar, we emphasize that during financial distress CEO duality will strengthen control systems and reduce internal discord in ASEAN firms.

The paper is one of the niche studies that has incorporated the difference between civil and common law rule in the study of corporate governance and its impact on financial measures of firms' in the ASEAN countries.

The paper aims to investigate the relationship between social responsibility and equity in China. In the process, the authors utilize data on corporate social responsibility (CSR) reports (in particular, information disclosure) and equity capital (focusing on cost). The overarching hypothesis may be phrased simply as: is CSR reporting rewarded by the capital market in China?

The data of 3,012 list corporations in China securities are used and 1,015 CSR report quality scores (Rankins CSR Ratings) are hand-gathered from HEXUN (Web site) and utilized in the process of developing the model; financial and stock market information is obtained from the Wind database and the China Stock Market and Accounting Research database.

The authors’ results suggest that overall the quality of CSR report is strongly, negatively related with the cost of capital: the higher the quality of social responsibility information disclosure, the lower the cost of equity capital. Most intriguingly, the authors find a sharp contrast between the government-owned corporations (state-owned enterprises) and privately owned, listed corporations. The quality of CSR reporting has a much higher impact in lowering the cost of equity capital for privately owned corporations. In contrasting the results for mandatory versus voluntary CSR disclosure, the quality of CSR reporting for the latter does not have any higher impact in lowering the cost of equity.

Good social responsibility behavior by corporations and their subsequent information disclosure has beneficial financial impacts. In the authors’ research, the authors showed its immediate impact to be in the lowering of the overall corporate cost of equity. In this regard, the authors would recommend that chief executive officers pay more attention to CSR practice and its disclosure. Private firms issuing CSR reports will benefit from much lower financing costs through the capital market.

Due to the structure of capital markets in China, the authors are able to show that CSR reporting of privately owned, listed corporations have much more effective signaling power. On the basis of the authors’ empirical findings in relation to the quality of CSR reporting and its impact on cost of capital, the authors suggest there is greater scope for research which takes a “finance and society” perspective. Based on more extensive research, such a perspective may enable scholars to orientate finance and finance research toward a model of “socio-capitalism”.

This paper aims to investigate the association between the corporate social responsibility (CSR) and the cost of equity (COE) and cost of debt (COD).

The authors use the multivariate regression analysis approach to address the developed hypotheses.

Using a sample of 230 Australian listed firms from 2004 to 2016, the authors document that firms complying with higher CSR affect both COE and COD negatively, which means that CSR disclosure reduces financing cost.

These results support the risk mitigation perspective of CSR compliance, showing that both the investors and creditors may lower their expected returns because they find that CSR can mitigate potential business risk.

The authors extend the CSR research with both COE and COD.