The relationship between earnings quality and cost of capital of the listed companies in Jordan : an agency theory perspective
Joint Authors
al-Amayidah, Ziyad Awdah
Sallum, Adil Akram Raji
Source
Issue
Vol. 12, Issue 23 العلوم الاقتصادية، التجارية و علوم التسيير (31 Dec. 2017), pp.3-30, 28 p.
Publisher
University Akli Mohand Oulhadj
Publication Date
2017-12-31
Country of Publication
Algeria
No. of Pages
28
Main Subjects
Economics & Business Administration
Abstract EN
The study aimed to provide empirical evidence derived from the reality of the Jordanian environment about the earnings quality and the cost of capital using Asymmetric Information Model, and how this relationship is affected by other variables that are related to agency theory such as the administrative equity ratio and the degree of unsystematic risk.
The population of the study consisted of all public shareholding companies in the industrial, service and real estate sectors.
Data was collected from a sample of 102 companies during the period (2008–2012).
The study variables were calculated based on Jones scale that was developed by Dechow et al.(1995) to measure earnings quality and the model relative effectiveness of the price in the scale of Asymmetric Information Model.
The dependent variable represented in the cost of the capital was calculated based on the capital costing model.
The results of the study supported the hypothesis of the reverse impact of earnings quality weighted by asymmetric information in the cost of the capital.
The results have shown an improvement in the interpretative value of the model when entering the auditing variable represented by the administrative equity ratio or the degree of unsystematic risk, also of the controversial results of the study the emergence of an impact of equity of debt in the cost of the capital
American Psychological Association (APA)
Sallum, Adil Akram Raji& al-Amayidah, Ziyad Awdah. 2017. The relationship between earnings quality and cost of capital of the listed companies in Jordan : an agency theory perspective. Revue Maarif،Vol. 12, no. 23 العلوم الاقتصادية، التجارية و علوم التسيير, pp.3-30.
https://search.emarefa.net/detail/BIM-809697
Modern Language Association (MLA)
Sallum, Adil Akram Raji& al-Amayidah, Ziyad Awdah. The relationship between earnings quality and cost of capital of the listed companies in Jordan : an agency theory perspective. Revue Maarif Vol. 12, no. 23 العلوم الاقتصادية, التجارية و علوم التسيير (Dec. 2017), pp.3-30.
https://search.emarefa.net/detail/BIM-809697
American Medical Association (AMA)
Sallum, Adil Akram Raji& al-Amayidah, Ziyad Awdah. The relationship between earnings quality and cost of capital of the listed companies in Jordan : an agency theory perspective. Revue Maarif. 2017. Vol. 12, no. 23 العلوم الاقتصادية، التجارية و علوم التسيير, pp.3-30.
https://search.emarefa.net/detail/BIM-809697
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 28-30
Record ID
BIM-809697