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Risque d'estimation, coût du capital et communication des tests de dépréciation

Author

Listed:
  • Luc Paugam

    (ESSEC Business School)

  • Olivier Ramond
  • Bruno Husson
  • Henri Philippe
  • Jean-François Casta

    (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

Abstract

The cost of equity capital is traditionally considered as an increasing function of the estimation risk – the risk of error regarding the distribution of a firm's future cash flows (FCF). Under international GAAPs, IAS 36 "Impairment of assets" -based information disclosure conveys relevant information to market participants regarding the risk underlying their FCF. In a sample of top French listed companies over the period 2006-2008, we find a negative association between the cost of capital and the level of information disclosed regarding impairment of assets. In addition, when distinguishing prospective information from descriptive information, our results suggest that only prospective disclosures matter to investors' decision-making.

Suggested Citation

  • Luc Paugam & Olivier Ramond & Bruno Husson & Henri Philippe & Jean-François Casta, 2013. "Risque d'estimation, coût du capital et communication des tests de dépréciation," Post-Print hal-01637695, HAL.
    • Handle: RePEc:hal:journl:hal-01637695
    as

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    Cited by:

    1. Gaëlle Lenormand & Lionel Touchais, 2014. "Le test de perte de valeur avec l'IAS 36 : difficultés et risques Le cas du groupe PSA," Post-Print hal-03125451, HAL.
    2. Luc Paugam & Olivier Ramond, 2015. "Effect of Impairment-Testing Disclosures on the Cost of Equity Capital," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 42(5-6), pages 583-618, June.
    3. Gaëlle Lenormand & Lionel Touchais, 2014. "Le test de perte de valeur avec l’IAS 36 : difficultés et risques," Post-Print hal-01737388, HAL.

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