Show simple item record

dc.contributor.authorCaban-Garcia, Maria T.; Cannack, Susan E.en_US
dc.dateFebruary 2006en_US
dc.date.accessioned2014-11-14en_US
dc.date.accessioned2018-11-02T14:38:10Z
dc.date.available2014-11-14en_US
dc.date.available2018-11-02T14:38:10Z
dc.identifier.otherSchool of Business Working Paper Series; No. 66en_US
dc.identifier.urihttps://wuir.washburn.edu/handle/10425/203
dc.description.abstractEconomic theory has established the link between information quality and the cost of equity capital (Easly and O'Hara 2004). An empirical implication of the theory is that firms' accounting standard choices and disclosure policies will positively affect their cost of equity capital. Prior studies in the United States have provided mixed results possibly because the disclosure environment is already strict (Leuz and Verrechia 2000). The current study empirically examines this link by comparing the cost of equity capital of Swiss firms that prepare their financial statements using International Accoutning Standards (IAS) with that of a sample of SWiss firms that use local accounting standards. IAS are a stricter set of standards that allow managers less alternative measurement methods and require higher disclosure levels than Swiss standards (Dumontier and Raffournier 1998). Using panel data for the period between 1993 and 1999 and a two-step model that controls for self-selection bias, the analysis documents a negative relationship between the expected cost of equity capital and IAS. The relationship remains even after controlling for firm specific risk factors.en_US
dc.format.mediumPDFen_US
dc.language.isoEngen_US
dc.publisherWashburn University, School of Businessen_US
dc.subjectAccounting standardsen_US
dc.subjectEquity capitalen_US
dc.subjectStock pricesen_US
dc.subjectSwiss Stock Exchangeen_US
dc.titleAccounting Standards and Their Effect on the Expected Cost of Equity Capital: Evidence from the Swiss Stock Exchangeen_US
dc.typeWorking paperen_US
washburn.identifier.cdm137en_US
washburn.identifier.oclc64698404en_US
washburn.source.locationen_US


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record