Reducing the company weighted cost-of-capital by use of Management Commentary transparency in SMEs

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In a stakeholder perspective, this paper deals with information transparency through use of the management commentary as a means to improve the relation to other stakeholders than shareholders in (smaller) non-listed companies (SME’s). Some of the main incentives for doing this could be to reduce the cost of financing through credit institutions or improve the supplier accepted creditworthiness. This paper demonstrates empirically that there is a strong relationship between corporate transparency through use of an extensive management commentary and partly the financial costs, partly creditor’s turnover.
Original languageEnglish
Publication year2011
StatePublished - 2011
Event8th Workshop on Corporate Governance - Brussels, Belgium
Duration: 30 May 201131 May 2011


Conference8th Workshop on Corporate Governance

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ID: 40216689