Direct and mediated associations among earnings quality, information asymmetry and the cost of equity

• Main Authors: BHATTACHARYA, Nilabhra, Ecker, Frank, Olsson, Per, Schipper, Katherine
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2012
• Subjects: path analysis; earnings quality; information asymmetry; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/960; https://ink.library.smu.edu.sg/context/soa_research/article/1959/viewcontent/DIRECT_AND_MEDIATED_ASSOC.pdf
• Institution: Singapore Management University

Using path analysis, we investigate the direct and indirect links between three measures of earnings quality and the cost of equity. Our investigation is motivated by analytical models that specify both a direct link and an indirect link that is mediated by information asymmetry, but do not suggest...