Proceedings of the 2017 International Conference on Education, Culture and Social Development (ICECSD 2017)

An Empirical Study on the Relationship between Accounting Conservatism and cost of equity capital --evidence from China

Authors
Xiang Fu, Shiping Liu
Corresponding Author
Xiang Fu
Available Online January 2017.
DOI
10.2991/icecsd-17.2017.17How to use a DOI?
Keywords
accounting conservatism; cost of equity capital; PEG model
Abstract

This article investigates the relationship between accounting conservatism and the cost of equity capital. Based on a sample of Chinese listed enterprises on Shenzhen and Shanghai Stock Exchange from 2011 to 2015, we find that accounting conservatismgenerally exists in China's listed companies, and the higher the degree of accounting conservatism, the smaller the information risk faced by investors, and the required investment rate of return will be reduced, resulting in a lower cost of equity capital.

Copyright
© 2017, 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/).

Download article (PDF)

Volume Title
Proceedings of the 2017 International Conference on Education, Culture and Social Development (ICECSD 2017)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
January 2017
ISBN
978-94-6252-358-6
ISSN
2352-5398
DOI
10.2991/icecsd-17.2017.17How to use a DOI?
Copyright
© 2017, 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  - Xiang Fu
AU  - Shiping Liu
PY  - 2017/01
DA  - 2017/01
TI  - An Empirical Study on the Relationship between Accounting Conservatism and cost of equity capital --evidence from China
BT  - Proceedings of the 2017 International Conference on Education, Culture and Social Development (ICECSD 2017)
PB  - Atlantis Press
SP  - 79
EP  - 84
SN  - 2352-5398
UR  - https://doi.org/10.2991/icecsd-17.2017.17
DO  - 10.2991/icecsd-17.2017.17
ID  - Fu2017/01
ER  -