The empirical relationship between earnings quality, cost of equity capital, and cost of debt
| Project/Area Number |
21730370
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| Research Category |
Grant-in-Aid for Young Scientists (B)
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| Allocation Type | Single-year Grants |
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| Research Field |
Accounting
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| Research Institution | Kobe University |
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Principal Investigator |
KITAGAWA Norio 神戸大学, 経営学研究科, 准教授 (80509844)
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| Project Period (FY) |
2009 – 2012
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| Project Status |
Completed (Fiscal Year 2012)
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| Budget Amount *help |
¥3,510,000 (Direct Cost: ¥2,700,000、Indirect Cost: ¥810,000)
Fiscal Year 2012: ¥780,000 (Direct Cost: ¥600,000、Indirect Cost: ¥180,000)
Fiscal Year 2011: ¥780,000 (Direct Cost: ¥600,000、Indirect Cost: ¥180,000)
Fiscal Year 2010: ¥780,000 (Direct Cost: ¥600,000、Indirect Cost: ¥180,000)
Fiscal Year 2009: ¥1,170,000 (Direct Cost: ¥900,000、Indirect Cost: ¥270,000)
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| Keywords | 利益の品質 / 情報リスク / 株式資本コスト / 負債コスト / 経営者予想 / 個別リスク / 情報環境 / 会計発生高の品質 / 利益平準化 / 利益の予測可能性 / 経営者持株比率 / 利益の時系列特性 / インプライド資本コスト / 利益の質 / 会計発生高の質 / 利益の持続性 |
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| Research Abstract |
The purpose of this research is to investigate the relationshipbetween accounting earnings quality, cost of equity capital, and cost of debt. As a result of analyses, I find the following evidences.
(1) Firms with higher earnings volatility, that is low earnings quality, experience higher cost of equity capital.
(2)General proxies for earnings quality, that is, accruals quality, earnings persistence, earnings predictability, and earnings smoothness have negatively correlated with bond yield spread.
(3) Proxies for earnings quality, that is, accruals quality, earnings predictability, and earnings smoothness have negatively correlated with idiosyncratic risk.
(4) Quality of management forecast earnings measured by management forecasterrors have negative correlations with idiosyncratic risk.
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Report
(5 results)
Research Products
(16 results)
