An Empirical Study on the Relationship between Accounting Conservatism and cost of equity capital --evidence from China

DOI

10.2991/icecsd-17.2017.17How to use a DOI?

Keywords

accounting conservatism; cost of equity capital; PEG model

Abstract

This article investigates the relationship between accounting conservatism and the cost of equity capital. Based on a sample of Chinese listed enterprises on Shenzhen and Shanghai Stock Exchange from 2011 to 2015, we find that accounting conservatismgenerally exists in China's listed companies, and the higher the degree of accounting conservatism, the smaller the information risk faced by investors, and the required investment rate of return will be reduced, resulting in a lower cost of equity capital.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xiang Fu
AU  - Shiping Liu
PY  - 2017/01
DA  - 2017/01
TI  - An Empirical Study on the Relationship between Accounting Conservatism and cost of equity capital --evidence from China
BT  - Proceedings of the 2017 International Conference on Education, Culture and Social Development (ICECSD 2017)
PB  - Atlantis Press
SP  - 79
EP  - 84
SN  - 2352-5398
UR  - https://doi.org/10.2991/icecsd-17.2017.17
DO  - 10.2991/icecsd-17.2017.17
ID  - Fu2017/01
ER  -