Assertion: disclosure | /r/CapableOf | reduce the cost of capital
Facets:
value: in verrecchia
type: LOCATION
value: in diamond
type: LOCATION
value: by lowering the information asymmetry
type: MANNER
Source sentences:
text: In Diamond and Verrecchia (1991), disclosure reduces the cost of capital by lowering the information asymmetry that shareholders suffer if they subsequently need to sell due to a liquidity shock.