مقاله انگلیسی رایگان در مورد اثر حفاظت سرمایه گذاران، IFRS و کیفیت درآمد بر هزینه سرمایه – الزویر 2017

Cost of capital is currently a much debated issued in accounting and economic research. According to Munteanu (2011), cost of capital is the cost of a firm’s funds (both debt and equity), or, from an investor’s point of view “the required rate of return on a portfolio firm’s existing securities”. There is a thoroughly extended literature that examined different aspects, inside earnings quality, investor protection and IFRS adoption, of cost of capital. Hence, concerning the effects of investor protection on cost of capital, using various structural econometric models, Francis et al (2005), Esponisa and Trombetta (2007), Chen Boubakri and Ghouma (2010), Semper and Beltran (2014) and Blanco et al (2015) found that on average, the higher the level of investor protection, the lower is the marginal cost of capital – due to the lower risk premium. Furthermore, another variable that have a negative impact on cost of capital is IFRS adoption. Several authors have observed the consequences of adopting IFRS. The most representative paper that analyzed the impact of adopting IFRS on the cost of equity capital came from Munteanu (2011). He claimed that most of the studies distinguish in the first place the firms that voluntarily adopted IFRS from those that adopted them mandatorily. However, in general, even though IFRS was adopted voluntarily or mandatorily, Covrig et al (2007), Daske et al (2008), Patro and Gupta (2014), Castillo-Merino et al (2014) and Christensen et al (2015) confirmed that IFRS adoption enhances the comparability of financial statements, improves corporate transparency, decreases in the cost of collecting information, increases in competition and efficiency in the capital market by reducing the information asymmetry which in turn decreases the cost of capital. Earnings quality is another factor that has a negative impact on cost of capital. Specifically, there is a consensus view of the findings from Affleck-Graves et al (2002), Bhattacharya et al (2003), Kim and Qi (2010), Valipour and Moradbeygi (2011) and Persakis and Iatridis (2015) who tested the association between cost of capital and various earnings quality attributes. They confirmed that higher level of earnings quality leads to lower level of cost of capital.