Earning Quality, Information Asymmetry and Cost of Equity Capital in Manufacturing Companies

DOI

10.2991/icobame-18.2019.34How to use a DOI?

Keywords

earnings quality; information asymmetry; cost of equitycapital; mediating

Abstract

This study examines the direct and indirect impacts of earnings quality on cost of equity capital by using path analysis. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange 2014-2016.Selected research samples were 108 manufacturing companies with purposive sampling technique. The results found that earnings quality had a significant negative effect on information asymmetry. Information asymmetry has a positive effect on the cost of equity capital. The test results also prove that information asymmetry has a role as a mediating variable. However, this study failed to find the direct effect of earnings quality on the cost of equity capital.

Copyright

© 2019, 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  - M. G. Kentris Indarti
AU  - Isaura Tribuana Puteri
AU  - Sri Sudarsi
PY  - 2019/07
DA  - 2019/07
TI  - Earning Quality, Information Asymmetry and Cost of Equity Capital in Manufacturing Companies
BT  - Proceedings of the International Conference on Banking, Accounting, Management, and Economics (ICOBAME 2018)
PB  - Atlantis Press
SP  - 155
EP  - 158
SN  - 2352-5428
UR  - https://doi.org/10.2991/icobame-18.2019.34
DO  - 10.2991/icobame-18.2019.34
ID  - Indarti2019/07
ER  -