The Effect of Earnings Quality on Cost of Equity Capital (Survey Study on Companies Listed in Damascus Stock Exchange)

Authors

  • Suzan Saleh Tishreen University
  • Eyad Hatem Tishreen University
  • Ghieth Jdeed Tishreen University

Abstract

 

 

 Companies aim to mitigate the imprecision risk that may be embedded in thier financial reporting by disclosing accurate earnings. which may reflect positively on future cash flow and consequently on the cost of companies’ equity.

The aims of this research is to study the impact of Earnings Quality on Cost of Equity Capital, using a sample of 20 Companies listed on the Damascus Stock Exchange during the period from 2013-2020, based on cross-sectional data models to achieve this research. The cost of owned capital was measured using the Ohlson model (1995), and the approach to cash scale was used to measure the quality of profits.

The results showed that there is no Statistically Significant Effect of the Quality of Earning on the Cost of Equity Capital, While the Results Showed that there is a positive Effect of the Earning Quality  in the Cost of Capital after Adjusting the Size Variable, and a negative Effect after Adjusting the Financial Leverage Variable.

 

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Published

2023-07-27

How to Cite

1.
سوزان صالح, اياد حاتم, غيث جديد. The Effect of Earnings Quality on Cost of Equity Capital (Survey Study on Companies Listed in Damascus Stock Exchange). Tuj-econ [Internet]. 2023Jul.27 [cited 2024Nov.25];45(3):585-602. Available from: https://journal.tishreen.edu.sy/index.php/econlaw/article/view/14669

Issue

Vol. 45 No. 3 (2023): Tishreen University Journal of Research and Scientific Studies - Economic and Legal Sciences

Section

Master student researches

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