Effects of Representational Faithfulness and Feedback Value on Cost of Equity
Journal Title: International Research Journal of Applied and Basic Sciences - Year 2013, Vol 4, Issue 12
Abstract
It is contended among the accounting researchers that information asymmetry could be reduced through disclosure of information in respect to quality of earnings. The main purpose of this paper is to review the effects of earnings attributes (feedback value and representational faithfulness) on the cost of equity. Review of the contemporary literature depicts that managers should disclose more quality information particularly related to feedback value and representational faithfulness in order to decrease the information asymmetry and as a result diminish the cost of equity. Cultivating from the discussion in contemporary literature, this paper proposes a framework that links associations between feedback value and representational faithfulness with cost of equity.
Authors and Affiliations
Mohammadghorban Mehri*| Ghorveh Branch, Islamic Azad University, Ghorveh, Iran. mehri_6916@yahoo.com, Mohammed Sangiru Umar| Department of Accounting and Finance. Faculty of Management, Universiti Teknologi Malaysia, Skudai Johor, Malaysia., Sayyed Ali Malihi| Department of Accounting, Hamedan Branch, Islamic Azad University, Hamedan, Iran., Seyedhossein Naslmosavi| Department of Accounting, Qaemshahr Branch, Islamic Azad University, Qaemshahr, Iran.
Keywords
Related Articles
- EP ID EP5844
- DOI -
- Views 305
- Downloads 7
Investigation of Seed Germination and Seedling Characteristics of Safflower Variety Under Salt Stress Conditions
In order to study the effect of salinity stress on germination and early seedling growth of six safflower genotypes namely FERAMAN, SINA, KM12, KM19, SIRIN and Kose by using five concentrations of NaCl (0, -0.3, -0.5, -1...
Study of Meiotic Behavior and Chromosome Number of 3 populations of A. carmanicus of the Astragalus sect. Microphysa Bunge. in Iran
in this study chromosome number and Meiotic behavior of 3 Iranian populations of A. carmanicus belonging to A. sect. Microphysa; A. carmanicus 24730, A. carmanicus 23017, and A. carmanicus 22976, is presented. Results fr...
The Effect of Leadership Style in Meeting the Hierarchal Needs of Bank Employees of Western Mazandaran
The purpose of this research study was to compare the leadership styles of western Mazandaran province in meeting the hierarchal needs of the bank employees. The research methodology saw causative and comparative. The pa...
Caring Behaviors Perceived by Nurses and Students in Critical Care Units in Tabriz University of Medical Sciences Affiliated Hospitals
Caring is central to the nature of nursing. Due to the special conditions of patients in critical care units, caring behaviors are important. But despite the important role of nursing in quality of care, priority of cari...
Factors of Decline and Degeneration of Civilizations According to Nahjolbalagheh
Human history reminds many nations and societies continued their lucky life with welfare and everything was going well then but suddenly, the factors of corruption and sedition appeared and the signs of breakup and degen...