EARNINGS QUALITY AND COST OF CAPITAL: THAI LISTED COMPANIES
Keywords:
Earnings Quality, Discretionary Accruals, Non-Discretionary Accruals, Cost of CapitalAbstract
This study aims to examine the association between earnings quality and cost of capital of listed firms on SET 50 and SET 100 index in the Stock Exchange of Thailand. Earnings quality is measured by two types of accrual which are discretionary accruals and non-discretionary accruals. The results show a positively significant association between those two types of accrual and cost of capital. To extend the scope of study on earning quality issue to be more useful, further research may focus on earnings quality measures in different approaches such as accounting-based measures and market-based measures.
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