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Risk factor disclosures tone and implied cost of equity

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Australian Journal of Management

Published online on

Abstract

Australian Journal of Management, Ahead of Print.
We examine the impact of the net positive tone of risk factor disclosures (RFD) on the implied cost of equity (COE). Using a sample of 18,172 observations from listed firms in the United States from 2006 to 2024, we find that net positive RFD tone is ...