ACCOUNTING INFORMATION COMPARABILITY AND DEBT

CAPITAL COST EMPIRICAL EVIDENCE FROM CHINESE LISTED

COMPANIES

 Object:
- Measure the comparability of accounting information of Chinese listed companies,
- Examine whether accounting information comparability can reduce the degree of
information asymmetry and debt capital cost between listed companies and creditors.
 Measurement: De Franco et al. (2011) comparability models
 Evidence: The annual samples of 9730 companies from China’s Shanghai and Shenzhen
A-share market which during the period 2004 to 2013.
 Consequence: Under the control of other factors, accounting information comparability
has a significant negative impact on equity capital costs.
Abstract:
Using the evidence from the annual samples of 9730 companies from China’s Shanghai and
Shenzhen A-share market which during the period 2004 to 2013. According to De Franco et al.
(2011) comparability models to measure the accounting information comparability for
companies. The correlation in the middle of the quality of accounting information and the cost of
creditor’s capital demonstrated and exert influence by the accounting information comparability.
As the result, under the controlled of other factors, the comparability of accounting information
had a significant negative effects on the debt capital cost.