Proceedings of the International Conference on Banking, Accounting, Management, and Economics (ICOBAME 2018)

Earning Quality, Information Asymmetry and Cost of Equity Capital in Manufacturing Companies

Authors
M. G. Kentris Indarti, Isaura Tribuana Puteri, Sri Sudarsi
Corresponding Author
M. G. Kentris Indarti
Available Online July 2019.
DOI
10.2991/icobame-18.2019.34How to use a DOI?
Keywords
earnings quality; information asymmetry; cost of equitycapital; mediating
Abstract

This study examines the direct and indirect impacts of earnings quality on cost of equity capital by using path analysis. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange 2014-2016.Selected research samples were 108 manufacturing companies with purposive sampling technique. The results found that earnings quality had a significant negative effect on information asymmetry. Information asymmetry has a positive effect on the cost of equity capital. The test results also prove that information asymmetry has a role as a mediating variable. However, this study failed to find the direct effect of earnings quality on the cost of equity capital.

Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the International Conference on Banking, Accounting, Management, and Economics (ICOBAME 2018)
Series
Advances in Economics, Business and Management Research
Publication Date
July 2019
ISBN
10.2991/icobame-18.2019.34
ISSN
2352-5428
DOI
10.2991/icobame-18.2019.34How to use a DOI?
Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - M. G. Kentris Indarti
AU  - Isaura Tribuana Puteri
AU  - Sri Sudarsi
PY  - 2019/07
DA  - 2019/07
TI  - Earning Quality, Information Asymmetry and Cost of Equity Capital in Manufacturing Companies
BT  - Proceedings of the International Conference on Banking, Accounting, Management, and Economics (ICOBAME 2018)
PB  - Atlantis Press
SP  - 155
EP  - 158
SN  - 2352-5428
UR  - https://doi.org/10.2991/icobame-18.2019.34
DO  - 10.2991/icobame-18.2019.34
ID  - Indarti2019/07
ER  -