Corporate Disclosure via the Internet and Implied Cost of Capital

  • Wesley Mendes-Da-Silva
  • Daniel Reed Bergmann


The classical literature of finance establishes arguments that emphasize the negative impact of corporate transparency on the level of return required by investors, or the cost of capital of the firm. However, even as the growing sophistication of technologies at the disposal of listed companies, the corporative communication with its stakeholders is still predominantly supported in the technological device that precedes the Internet. Therefore, this chapter discusses the relationship between voluntary disclosure via corporate websites and the implied cost of equity capital of listed companies. Based on data from more than 300 companies, our main results are three. First, on average, the companies listed on the New Market showed a lower cost of capital. Second, the companies deemed to be the most aggressive showed a higher cost of capital (≈3% points higher than the conservative companies. Third, the metrics of corporate website disclosure did not appear to be related to cost of capital.


Disclosure Cost of capital Financial statements Corporate governance Accounting policy 

JEL Code

G34 D24 O14 


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Copyright information

© Springer International Publishing AG, part of Springer Nature 2019

Authors and Affiliations

  • Wesley Mendes-Da-Silva
    • 1
    • 2
  • Daniel Reed Bergmann
    • 3
  1. 1.Sao Paulo School of Business Administration (FGV/EAESP)Sao PauloBrazil
  2. 2.University of Texas at AustinAustinUSA
  3. 3.University of São PauloSão PauloBrazil

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