Earnings Quality, Insider Trading, and Cost of Capital

2003 ◽  
Author(s):  
David Aboody ◽  
John S. Hughes ◽  
Jing Liu
Keyword(s):  
Insider Trading ◽  
Cost Of Capital ◽  
Earnings Quality

Earnings Quality, Insider Trading, and Cost of Capital

2005 ◽  
Vol 43 (5) ◽  
pp. 651-673 ◽  
Author(s):  
DAVID ABOODY ◽  
JOHN HUGHES ◽  
JING LIU
Keyword(s):  
Insider Trading ◽  
Cost Of Capital ◽  
Earnings Quality

Sarbanes‐Oxley Act, perceived earnings quality and cost of capital

2009 ◽  
Vol 8 (3) ◽  
pp. 216-231 ◽  
Author(s):  
Hsihui Chang ◽  
Guy D. Fernando ◽  
Woody Liao
Keyword(s):  
Cost Of Capital ◽  
Earnings Quality ◽  
Sarbanes Oxley

scholarly journals CSR DISCLOSURE AND COST OF CAPITAL : THE MEDIATING ROLE OF EARNINGS QUALITY

2021 ◽  
Vol 16 (2) ◽  
pp. 223
Author(s):  
Chaerunnisa . ◽  
Tri Lestari ◽  
Windu Mulyasari
Keyword(s):  
Cost Of Capital ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Linear Regression Analysis ◽  
Cost Of Debt ◽  
Global Reporting Initiative ◽  
Cost Of Equity ◽  
Mediating Role ◽  
Csr Disclosure ◽  
The Cost

<p><em>This study aims to analyze the effect of CSR disclosure on the cost of capital with earnings quality as mediating variable. CSR disclosure was measured by Global Reporting Initiative (GRI) Standards. The cost of capital was measured by the cost of equity and the cost of debt. Meanwhile, earnings quality was measured by absolute abnormal accruals. The population of this research is mining companies listed on the Indonesia Stock Exchange period 2017-2019. Based on the purposive sampling method, the samples chosen are 32 companies with a total sample of 96 data. This study used multiple linear regression analysis using SPSS 25 version software and path analysis using the Sobel online calculator. This study showed that CSR disclosure has a direct negative effect on the cost of equity but does not affect the cost of debt. Firms with better CSR disclosure have better earnings quality. Earnings quality does not affect both costs of capital proxies. Earnings quality does not have a mediating role in the effect of CSR disclosure on both costs of capital proxies. </em></p>

Insider Trading, Earnings Quality, and Accrual Mispricing

2002 ◽  
Vol 77 (4) ◽  
pp. 755-791 ◽  
Author(s):  
Messod D. Beneish ◽  
Mark E. Vargus
Keyword(s):  
Earnings Management ◽  
Insider Trading ◽  
Earnings Quality ◽  
Trading Strategies ◽  
Factors Associated ◽  
Market Participants ◽  
Ex Ante ◽  
One Year ◽  
The One ◽  
Accrual Mispricing

This paper investigates whether insider trading is informative about earnings quality and the valuation implications of accruals. We show that (1) the one-year-ahead persistence of income-increasing accruals is significantly lower when accompanied by abnormal insider selling and greater when accompanied by abnormal insider buying; (2) the accrual mispricing phenomenon observed in previous work (e.g., Sloan 1996) is due to the mispricing of income-increasing accruals; (3) one-year-ahead hedge returns to trading strategies based on the direction of accruals and insider trading significantly exceed those based on accruals alone; and (4) the lower persistence of income-increasing accruals accompanied by abnormal insider selling appears to be at least partly attributable to opportunistic earnings management. Our evidence suggests that market participants and researchers can use managers' contemporaneous trading in ex ante assessing the likelihood that the firms' accruals are of high or low quality, and in assessing the likelihood of earnings management. Our evidence suggesting that insiders trade on their knowledge of factors associated with accrual persistence is also relevant to policymakers charged with regulating insider trading.

Product Market Competition, Legal Institutions, and Accounting Conservatism

2015 ◽  
Vol 14 (2) ◽  
pp. 1-39 ◽  
Author(s):  
In-Mu G. Haw ◽  
Simon S. M. Ho ◽  
Yuansha Li ◽  
Feida (Frank) Zhang
Keyword(s):  
Financial Reporting ◽  
Insider Trading ◽  
Earnings Quality ◽  
Market Competition ◽  
Positive Association ◽  
Product Market ◽  
Accounting Conservatism ◽  
Product Market Competition ◽  
Legal Institutions ◽  
International Setting

ABSTRACT In this study, we examine product market competition's role in shaping accounting conservatism in an international setting. Using a large dataset from 38 countries, we find evidence that product market competition is positively associated with accounting conservatism in countries with strong legal institutions, but not in countries with weak legal institutions. Moreover, the positive association is significantly more pronounced in countries with high-quality financial reporting environments comprising a higher earnings quality, more frequent and greater disclosure practices, and the more stringent enforcement of insider trading regulations. Our empirical findings suggest that product market competition and strong legal institutions jointly drive accounting conservatism.

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