The effect of accounting conservatism on the cost of equity capital: evidence from Indonesia

2021 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Ade Imam Muslim ◽  
Doddy Setiawan
Keyword(s):  
Equity Capital ◽  
Accounting Conservatism ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
The Cost

Accounting conservatism and the cost of equity capital: UK evidence

2009 ◽  
Vol 35 (4) ◽  
pp. 325-345 ◽  
Author(s):  
Ann L.‐C. Chan ◽  
Stephen W.J. Lin ◽  
Norman Strong
Keyword(s):  
Equity Capital ◽  
Accounting Conservatism ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
The Cost

scholarly journals Pengaruh Konservatisme Akuntansi Terhadap Biaya Ekuitas Dan Peran Komite Audit Sebagai Moderasi

2020 ◽  
Vol 2 (2) ◽  
pp. 2659-2672
Author(s):  
Olvie Andellsi ◽  
Mayar Afriyenty
Keyword(s):  
Audit Committee ◽  
Stock Exchange ◽  
Total Sample ◽  
Equity Capital ◽  
Accounting Conservatism ◽  
Manufacturing Companies ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
The Cost

This study was conducted to examine the effect of accounting conservatism on cost of equity capital and the role of the audit committee as moderation. This research is a type of causal associative research with quantitative approach. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2014-2018. Samples were selected using a purposive sampling method with a total sample of 280 samples. Cost of equity capital is measured using the Ohlson (1995) model. Accounting conservatism is measured by the Givoly and Hayn (2000) model. The role of the audit committee is measured through the experience and capabilities possessed in the field of accounting and finance. The results showed that accounting conservatism had a significant negative effect on the cost of equity capital. In addition, the role of the audit committee is able to moderate the relationship between accounting conservatism and the cost of equity capital. For further research is expected to expand the object and year of research because in this study only examined manufacturing companies for the 2014-2018 observation year. In addition, further research can look for other independent variables if you want to do the same research.

scholarly journals Information Asymmetry, Ownership Structure and Cost of Equity Capital: The Formation for Open Innovation

2021 ◽  
Vol 7 (1) ◽  
pp. 48
Author(s):  
Ade Imam Muslim ◽  
Doddy Setiawan
Keyword(s):  
Stock Market ◽  
Information Asymmetry ◽  
Ownership Structure ◽  
Trading Volume ◽  
Foreign Ownership ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Ownership Structures ◽  
The Cost

Our study aims to investigate how information asymmetry and ownership structure affect cost of equity capital. For that purpose, we collected 246 issuers over 4 years for a total of 984 observations. By using panel data processing, we found that the information asymmetry we proxied through Price non-Synchronization and trading volume had an effect on the cost of equity capital. Our results also confirmed both Agency Theory and Pecking Order Theory. Both theories are in line with the conditions of the stock market in Indonesia. In addition, we found that institutional and foreign ownership structures also had an effect on the cost of equity capital. Furthermore, our results also confirmed Interest Alignment Theory and Entrenchment Theory. Our research is expected to contribute to the debate on the existence of information asymmetry and ownership structures in relation to the cost of equity capital. We also hope that it will be a valuable input for investors in considering their investment. Moreover, from the results of this study, investors can also consider foreign ownership or institutional ownership in determining their investment. In addition, stock market regulators in Indonesia can develop approaches to minimize information asymmetry and encourage foreign investors to invest in Indonesia.

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