Does analyst information influence the cost of debt? Some international evidence
Fecha
2019Versión
Acceso abierto / Sarbide irekia
Tipo
Artículo / Artikulua
Versión
Versión aceptada / Onetsi den bertsioa
Identificador del proyecto
ES/1PE/ECO2016-77631-R ES/1PE/ECO2016-79693-P
Impacto
|
10.1016/j.iref.2019.07.005
Resumen
We examine the contribution of analyst forecasting accuracy in reducing the average total cost of debt to firms. Our results reinforce the importance of analyst accuracy as a mechanism for reducing information asymmetries in the market, which is important to increase firms' access to available investment funding. A significant level of institutional and bank-held ownership serves as a substitutio ...
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We examine the contribution of analyst forecasting accuracy in reducing the average total cost of debt to firms. Our results reinforce the importance of analyst accuracy as a mechanism for reducing information asymmetries in the market, which is important to increase firms' access to available investment funding. A significant level of institutional and bank-held ownership serves as a substitution mechanism which mitigates the capacity of analyst accuracy to reduce information risk. External governance mechanisms also moderate the role played by analyst accuracy in the reduction of the cost of corporate debt. Our empirical findings are robust to different model specifications including the potential effect of the legal origin, to the consideration of an alternative proxy for the total cost of debt, to the inclusion of additional analyst-characteristics and stock-level characteristics. [--]
Materias
Cost of debt,
Analyst accuracy,
Internal governance mechanisms,
External governance mechanisms
Editor
Elsevier
Publicado en
International Review of Economics & Finance, 2019, 64, 323-342
Departamento
Universidad Pública de Navarra. Departamento de Gestión de Empresas /
Nafarroako Unibertsitate Publikoa. Enpresen Kudeaketa Saila /
Universidad Pública de Navarra/Nafarroako Unibertsitate Publikoa. Institute for Advanced Research in Business and Economics - INARBE
Versión del editor
Entidades Financiadoras
Elena Ferrer is grateful to the Spanish Ministry of Economy and Competitiveness, Project ECO2016-77631-R and Fundacion Bancaria Caja Navarra. Nuria Suárez acknowledges financial support from the Spanish Ministry of Economy and Competitiveness, Project ECO2016-79693-P, and the Comunidad de Madrid Project S2015/HUM-3353.