Digital Technologies Disclosure and the Cost of Capital: The Mediating Role of Sustainability Performance
研究了英国非金融企业数字技术披露对资本成本的影响，发现披露越多可能增加感知风险从而提高资本成本，且企业可持续绩效在其中起中介作用。
ABSTRACT This study examines the economic consequences of Digital Technologies Disclosure (DTD), focusing on its impact on the cost of capital. The increasing significance of digital transformation in shaping corporate strategies and market perceptions motivates the study. Using a sample of 280 nonfinancial firms listed on the FTSE All‐Share Index between 2015 and 2022, we conducted an empirical analysis. This period represents a dynamic phase of digital evolution and heightened regulatory focus on corporate disclosures. We employ automated content analysis, using the Python language, to analyze the frequency of DTs in the annual reports. Our findings report that there is a positive relationship between DTD and the cost of capital, suggesting that higher levels of DTD may increase perceived risks, leading investors and lenders to demand higher returns. Furthermore, ESG performance mediates the relationship between DTD and the cost of capital. These findings highlight the importance of incorporating DTD into investment decision‐making processes. The study contributes to the growing body of literature on the economic implications of technology‐related disclosures. This paper is the first study to examine how DTD affects the UK capital market using a holistic view of digital activities. The current research provides valuable insights for financial market participants, academics, and regulators, emphasizing how DTD influences the cost of capital and its broader economic impact.