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1、外文文献翻译原文:AccountingInformation,Disclosure,andtheCostofCapitalInthispaperweexaminewhetherandhowaccountinginformationaboutafirmmanifestsinitscostofcapital,despitetheforcesofdiversification.WebuildamodelthatisconsistentwiththeCapitalAssetPricingModelandexplicitlyallowsformultiplesecuritieswho
2、secashflowsarecorrelated.Wedemonstratethatthequalityofaccountinginformationcaninfluencethecostofcapital,bothdirectlyandindirectly.Thedirecteffectoccursbecausehigherqualitydisclosuresaffectthefirm’sassessedcovarianceswithotherfirms’cashflows,whichisnondiversifiable.Theindirecteffectoccursbe
3、causehigherqualitydisclosuresaffectafirm’srealdecisions,whichlikelychangesthefirm’sratiooftheexpectedfuturecashflowstothecovarianceofthesecashflowswiththesumofallthecashflowsinthemarket.Weshowthatthiseffectcangoineitherdirection,butalsoderiveconditionsunderwhichanincreaseininformationquali
4、tyleadstoanunambiguousdeclineinthecostofcapital.Thelinkbetweenaccountinginformationandthecostofcapitaloffirmsisoneofthemostfundamentalissuesinaccounting.Standardsettersfrequentlyrefertoit.Forexample,ArthurLevitt,theformerchairmanoftheSecuritiesandExchangeCommission(SEC),suggeststhat“highqu
5、alityaccountingstandards...reducecapitalcosts”(Levitt[1998,p.81]).Similarly,NeelFoster,aformermemberoftheFinancialAccountingStandardsBoard(FASB),claimsthat“Moreinformationalwaysequatestolessuncertainty,and...peoplepaymoreforcertainty.Inthecontextoffinancialinformation,theendresultisthatbet
6、terdisclosureresultsinalowercostofcapital”(Foster[2003,p.1]).Whiletheseclaimshaveintuitiveappeal,thereissurprisinglylittletheoreticalworkonthehypothesizedlink.Inparticular,itisuncleartowhatextentaccountinginformationorfirmdisclosuresreducenondiversifiablerisksineconomieswithmultiplesecurit
7、ies.Assetpricingmodels,suchastheCapitalAssetPricingModel(CAPM),andportfoliotheoryemphasizetheimportanceofdistinguishingbetweenrisksthatarediversifiableandthosethatarenot.Thus,thechallengeforaccountingresearchersistodemonstratewhetherandhowfirms’accountinginfor