Does Corporate Environmental Disclosure Affect the Cost of Capital? Evidence from Tunisian Companies

Dr. Toukabri Mohamed
Dr. Toukabri Mohamed * §
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Pr. Jilani Faouzi
Pr. Jilani Faouzi
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§ Faculty of Economic Sciences and Management of Tunis

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Does Corporate Environmental Disclosure Affect the Cost of Capital? Evidence from Tunisian Companies

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Abstract

We examine the effect of corporate environmental disclosure on the cost of equity capital for a sample of Tunis-ian firms over the period 2003-2011. Using an approach based on increasing dividends to estimate firms’ cost of equity, we find that firms with better environmental disclosure scores exhibit cheaper equity financing. In particular, our findings suggest that investment in practices corporate environmental disclosure contributes substantially to reducing firms’ cost of equity. Our paper contributes to the literature by adding evidence on effects of corporate environmental discl-osure voluntary on long term economic forecasts of the cost of equity and on the financial value of firms.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Dr. Toukabri Mohamed, Pr. Jilani Faouzi. 2014. "Does Corporate Environmental Disclosure Affect the Cost of Capital? Evidence from Tunisian Companies". Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 14 (GJMBR Volume 14 Issue D1).

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords
corporate environmental disclosurecost of equity capital tunisian companystakeholder theory
Classification
GJMBR-D Classification JEL Code: M59
Q56
  • Submission ReceivedDecember 11, 2013
  • Peer Review Double Blind
    Handling Editor
  • Accepted January 1, 2014
  • Published January 15, 2014
Version of record

v1.2

Issue date
March 25, 2014

Language
English
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Does Corporate Environmental Disclosure Affect the Cost of Capital? Evidence from Tunisian Companies

Dr. Mohamed
Dr. Mohamed Faculty of Economic Sciences and Management of Tunis
Pr. Faouzi
Pr. Faouzi
  • Submission ReceivedDecember 11, 2013
  • Peer Review Double Blind
    Handling Editor
  • Accepted January 1, 2014
  • Published January 15, 2014