Accounting Comparability and Debt Cost

<p align="justify">This paper takes China's A-share listed companies in 2010-2017 as the research object to explore the impact of accounting comparability on debt costs. First, adopt De Franco’s model to measure companies’ accounting comparability. Then, establish the multivariate regression model of accounting comparability and debt cost to implement an empirical study on the relationship between them. Further, property rights and audit quality are taken into account as internal and external factors to examine whether these two factors have impacts on the relationship between accounting comparability and debt cost. The results show that: (1) Accounting comparability is significantly negatively correlated with debt cost; (2) Compared with state-owned enterprises, the negative correlation between accounting comparability and debt cost is more significant in non-state-owned enterprises; (3) Compared with enterprises of higher audit quality, the negative correlation between accounting comparability and debt cost is more significant in enterprises of lower audit quality. This shows that accounting comparability is useful in decision-making, but the property rights of state-owned enterprises weakens the impact of accounting comparability on debt costs, and audit quality is an alternative to accounting comparability for the impact on debt costs.</p><p align="justify">The results of this paper provide some theoretical references for relevant departments to improve accounting standards and auditing regulations so that accounting comparability and audit quality can be improved, and accelerate the property rights reform of state-owned enterprises.</p>

FAKTOR PENENTU STRUKTUR MODAL PADA PERUSAHAAN KELUARGA DAN NONKELUARGA DI INDONESIA

This research aims to examine and analyze the determinants of capital structure in family business and nonfamily business. This research uses sample of 370 companies listed on BEI from 2012 to 2016 using the purposive sampling method. This research uses determinants of capital structure, such as, growth opportunities, debt cost, age, cash flow, size, non-debt tax shield, and investment. Debt to asset ratio is used as the proxy of capital structure. Results show growth opportunities and debt cost have negative relationship with capital structure, however size has positive relationship with capital structure in all firms in Indonesia. Furthermore, family ownership strengthens the negative relationship of debt cost, age, and cash flow on capital structure, however size weakens the positive relationship with capital structure.

Factors affecting cost of debt of companies listed on Ho Chi Minh S tock Exchange

Cost of debt is one of factors that firms consider when making their financing decision. Firms use more debt for their operating business in case of lower debt cost. Therefore, determing the impact factors on cost debt is interested in by firms and scholars. This study uses samples of 313 listed firms on Ho Chi Minh Stock exchange over period 2012 to 2017. The finding is that foreign ownership, state ownership, and financing leverage adversely affect on debt cost, while average 12-month interest positively impacts on the cost of debt.

STRUKTUR MODAL PENDEKATAN DINAMIS PERUSAHAAN OTOMOTIF DAN KOMPONENNYA SAAT KRISIS GLOBAL 2008

The increase in business during the global crisis to the challenge of funding and capital structure dynamic analysis approach is suitable for the observation of the capital structure. This study is intended to demonstrate the influence of profitability, firm size, cost of equity, debt cost, and firm value volatility, leverage and speed adjustment sertaoptimal the capital structure. By using the auto company's financial statements and its components in a data 2008-2012 profitability, firm size, cost of equity, debt cost, danfirm value volatility analyzed using multiple regression analysis to examine the effect on the capital structure and leverage optimal data and speed adjustmentdianalisis method Generalized Moment Method (GMM) to examine the achievement of optimal capital structure and speed of achievement of optimal capital structure. The results found that the only significant profitability and firm size negatively affects the capital structure, the cost is being equity, debt cost, and firm value volatilitytidak significantly affect their capital structure. The automotive industry and its components was successfully adjust its capital structure to an optimal position, but the adjustment is slow. In a global crisis of capital structure adjustment to the optimal capital structure is progressing slowly in view of the difficulty of finding external funding sources.

The GASB No. 34 Impact of Budget-to-Actual Variances on Bond Ratings: Evidence from U.S. Cities

ABSTRACT We investigate the managerial incentives and debt cost effects associated with budget-to-actual variance disclosures required by the GASB No. 34 reporting model. Empirically, we document associations between variances and municipal bond ratings in a sample of large U.S. cities over the period 2003–2006. We find a disproportionate share of favorable variances for revenues, expenditures, and the net (i.e., surplus/deficit). Further, we show that revenue variances in either direction are associated with lower bond ratings, i.e., precision is important in predicting revenues. In contrast, favorable expenditure variances are associated with higher bond ratings, i.e., imprecision may be tolerated if the variance is favorable. These associations exist despite indirect evidence of managerial incentives to create budgetary slack for both revenues and expenditures. The findings suggest that these disclosures required in the GASB No. 34 financial reporting model indicate factors that influence municipal debt costs.