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Web of Proceedings - Francis Academic Press
Web of Proceedings - Francis Academic Press

Does Accounting Conservatism Affect the Cost of Capital?

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DOI: 10.25236/msied.2018.007

Author(s)

Huiying Hu

Corresponding Author

Huiying Hu

Abstract

This paper takes listed companies from 2011 to 2015 non-financial industry as samples, measured by the GLS, OJN, PEG and other models, to examine the influence of accounting conservatism on cost of equity and debt, which finds that accounting conservatism is ubiquitous, and it is negatively correlated with cost of equity capital but positively correlated with cost of debt capital.

Keywords

Accounting Conservatism, Cost of Equity Capital, Cost of Debt Capital