Quality of Earning and Capital Cost

Subject Areas : Financial Knowledge of Securities Analysis

هاشم  نیکومرام ¹ (ندارد)
پیمان  امینی ² (مسئول مکاتبات)

Received: 2011-04-10 Accepted : 2011-07-04 Published : 2011-06-22

Keywords: Equity, Capital of Cost, The quality of accruals, Variability of the profits, the latten of profits,

Abstract :

Based on theoretical models and research results there is a significant positive effect between quality and cost accounting. In this study the relationship between cost of equity and six earnings quality was evaluated . Six dimensions of quality include the quality of accruals-based accounting data, variability of earnings, accruals optional, common factors, the ability to forecast revenue and profit is being paved. Hypothesis testing showed that generally the least desirable for companies with profits of companies in the desired maximum value, the cost of equity are higher. The other four indicators of interest "accruals quality" is the highest impact on equity. In addition, the explanatory power of ROE model contains six parameters of interest, more ROE is the explanatory power of models that have used only one indicator of the quality. Thus, the benefits of quality had a significant negative correlation with the cost of equity . The results of this research could benefit from looking at the importance and quality of place to remind investors and other stakeholders.