Title: Voluntary disclosure frequency and cost of debt: an analysis in the Tunisian context

Authors: Dorra Talbi; Mohamed Ali Omri

Addresses: Department of Accounting, Institut Supérieur d'Informatique et de Gestion de Kairouan, Kairouan, Tunisia ' Department of Accounting, College of Business Administration, Northern Border University, Saudi Arabia

Abstract: The aim of this paper is to study the impact of voluntary information disclosure on cost of debt capital. Our survey has been achieved on a sample of 22 firms listed in the Tunis stock exchange over a period spanning from 1998 to 2004. The results confirm the existence of a negative and significant relationship between the frequencies of voluntary disclosure on cost of debt. This study's survey shows that the information disclosure mitigate the asymmetric information between manager and lenders which would consequently decrease the cost of capital.

Keywords: voluntary disclosure; cost of debt; asymmetric information; debt capital; financial accounting; Tunisia; cost of capital.

DOI: 10.1504/IJMFA.2014.064521

International Journal of Managerial and Financial Accounting, 2014 Vol.6 No.2, pp.167 - 174

Available online: 29 Aug 2014 *

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