This paper examines the relation between the quality of financial reporting, information risk and cost of capital for a sample of firms listed in TSE's during 1380-1384.Using accruals quality as a proxy for financial reporting quality and information risk; prior research suggests that financial reporting quality affects information risk, and in tum, affects firm's cost of capital. We find that firms with poor accruals quality have higher cost of capital relative to firms with high accruals quality. We also find that the effect of discretionary accruals quality on cost of capital (cost of debt and cost of equity) is greater than for non-discretionary accruals (innate accruals) quality.
Arabmazar Yazdi,M and Talebian,M . (2008). Financial Reporting Quality, Information Risk and Cost of Capital. Empirical Studies in Financial Accounting, 6(21), 1-30.
MLA
Arabmazar Yazdi,M , and Talebian,M . "Financial Reporting Quality, Information Risk and Cost of Capital", Empirical Studies in Financial Accounting, 6, 21, 2008, 1-30.
HARVARD
Arabmazar Yazdi M, Talebian M. (2008). 'Financial Reporting Quality, Information Risk and Cost of Capital', Empirical Studies in Financial Accounting, 6(21), pp. 1-30.
CHICAGO
M Arabmazar Yazdi and M Talebian, "Financial Reporting Quality, Information Risk and Cost of Capital," Empirical Studies in Financial Accounting, 6 21 (2008): 1-30,
VANCOUVER
Arabmazar Yazdi M, Talebian M. Financial Reporting Quality, Information Risk and Cost of Capital. Empirical Studies in Financial Accounting. 2008;6(21):1-30 (In Persian).
