Securities Regulation
Disclosure, Liquidity, and the Cost of Capital
Douglas W. Diamond and Robert E. Verrecchia
- Year
- 1991
- Venue
- Journal of Finance
- Level
- Advanced
Summary
Models how public disclosure can reduce information asymmetry, improve securities liquidity, and lower financing costs. The paper also identifies countervailing effects through market-making capacity, making the relation between disclosure and firm value an institutional rather than automatic result.
Citation
Douglas W. Diamond and Robert E. Verrecchia. "Disclosure, Liquidity, and the Cost of Capital." Journal of Finance, 1991.
DOI: 10.1111/j.1540-6261.1991.tb04620.x
BibTeX
@article{Diamond1991Disclosure,
title = {Disclosure, Liquidity, and the Cost of Capital},
author = {Douglas W. Diamond and Robert E. Verrecchia},
year = {1991},
journal = {Journal of Finance},
doi = {10.1111/j.1540-6261.1991.tb04620.x},
url = {https://doi.org/10.1111/j.1540-6261.1991.tb04620.x}
}