%0 Journal Article
%T Capital Market Implications of Corporate Disclosure: German Evidence
%A Michael Gr¨šning
%J BuR : Business Research
%D 2011
%I Verband der Hochschullehrer f¨šr Betriebswirtschaft e.V.
%X This paper investigates the relationship between annual report disclosure, market liquidity, and capital cost for firms registered on the Deutsche B rse. Disclosure is comprehensively measured using the innovative Artificial Intelligence Measurement of Disclosure (AIMD). Results show that annual report disclosure enhances market liquidity by changing investorsĄ¯ expectations and inducing portfolio adjustments. Trading frictions are negatively associated with disclosure. The study provides evidence for a capital-costreduction effect of disclosure based on the analysis of investorsĄ¯ return requirements and market values. Altogether, no evidence is found that the information processing at the German capital market is structurally different from other markets.
%K annual report disclosure
%K capital market
%K cost of capital
%K market liquidity
%U http://www.business-research.org/2011/1/finance/2977/gruening-capital-market.pdf