ABSTRACT
The study examines the relationship between forward-looking disclosures and the cost of equity capital for the banking sector. This research is important because financial and non-financial forward-looking disclosures demonstrate bank capability. Financing online service competition conditions influences the role of forward-looking disclosures for the assessment of bank capability. Three years of data and multiple regression are used to test the relationship. The result shows that forward-looking disclosures (non-financial) can significantly decrease the cost of equity capital. There is an interesting finding that forward-looking disclosures are still useful, although other information is available in online media, and they have a role in relation to bank capability.
