The Effect of Conditional Conservatism on Cost of Equity Capital

This study investigates the relationship between conditional conservatism and the cost of equity capital. In this study conditional conservatism rate is measured based on Callen et al (2009) at firm-year level and the three Fama and French (1993) factor model is used to investigate the impact of con...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	Seyed Abbas Hashemi, Shekoofeh Farahmand, Naser Shamirzaei Jeshvaghani
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2011
Materias:	conditional conservatism cost of equity capital asymmetric timeliness three fama and french factor model Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/d3665353fef7420388adca2f51d398c6
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:d3665353fef7420388adca2f51d398c6
record_format	dspace
spelling	oai:doaj.org-article:d3665353fef7420388adca2f51d398c62021-11-04T19:41:46ZThe Effect of Conditional Conservatism on Cost of Equity Capital2008-89142476-292X10.22103/jak.2011.12https://doaj.org/article/d3665353fef7420388adca2f51d398c62011-09-01T00:00:00Zhttps://jak.uk.ac.ir/article_12_71b71b78176bcaf0830d558a98aceda7.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XThis study investigates the relationship between conditional conservatism and the cost of equity capital. In this study conditional conservatism rate is measured based on Callen et al (2009) at firm-year level and the three Fama and French (1993) factor model is used to investigate the impact of conditional conservatism on the cost of equity capital at firm and portfolio level. The sample consists of 82 firms that are publicly traded in the Tehran Stock Exchange (TSE) over the period 2001-2009. A multi variable regression model has been used for testing of hypotheses in cross sectional and time series forms. Obtained results show that there is a negative relationship between conditional conservatism and the cost of equity capital and higher degree of conditional conservatism decreases firm’s cost of equity capital. Also, there is a positive relationship between conditional conservatism and portfolio’s cost of capital. This relationship is statistically significant in the case of middle conservatism portfolio and high conservatism portfolio. However, this is insignificant in case of low conservatism portfolio.Seyed Abbas HashemiShekoofeh FarahmandNaser Shamirzaei JeshvaghaniShahid Bahonar University of Kermanarticleconditional conservatismcost of equity capitalasymmetric timelinessthree fama and french factor modelAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 2, Iss 7, Pp 47-67 (2011)
institution	DOAJ
collection	DOAJ
language	FA
topic	conditional conservatism cost of equity capital asymmetric timeliness three fama and french factor model Accounting. Bookkeeping HF5601-5689
spellingShingle	conditional conservatism cost of equity capital asymmetric timeliness three fama and french factor model Accounting. Bookkeeping HF5601-5689 Seyed Abbas Hashemi Shekoofeh Farahmand Naser Shamirzaei Jeshvaghani The Effect of Conditional Conservatism on Cost of Equity Capital
description	This study investigates the relationship between conditional conservatism and the cost of equity capital. In this study conditional conservatism rate is measured based on Callen et al (2009) at firm-year level and the three Fama and French (1993) factor model is used to investigate the impact of conditional conservatism on the cost of equity capital at firm and portfolio level. The sample consists of 82 firms that are publicly traded in the Tehran Stock Exchange (TSE) over the period 2001-2009. A multi variable regression model has been used for testing of hypotheses in cross sectional and time series forms. Obtained results show that there is a negative relationship between conditional conservatism and the cost of equity capital and higher degree of conditional conservatism decreases firm’s cost of equity capital. Also, there is a positive relationship between conditional conservatism and portfolio’s cost of capital. This relationship is statistically significant in the case of middle conservatism portfolio and high conservatism portfolio. However, this is insignificant in case of low conservatism portfolio.
format	article
author	Seyed Abbas Hashemi Shekoofeh Farahmand Naser Shamirzaei Jeshvaghani
author_facet	Seyed Abbas Hashemi Shekoofeh Farahmand Naser Shamirzaei Jeshvaghani
author_sort	Seyed Abbas Hashemi
title	The Effect of Conditional Conservatism on Cost of Equity Capital
title_short	The Effect of Conditional Conservatism on Cost of Equity Capital
title_full	The Effect of Conditional Conservatism on Cost of Equity Capital
title_fullStr	The Effect of Conditional Conservatism on Cost of Equity Capital
title_full_unstemmed	The Effect of Conditional Conservatism on Cost of Equity Capital
title_sort	effect of conditional conservatism on cost of equity capital
publisher	Shahid Bahonar University of Kerman
publishDate	2011
url	https://doaj.org/article/d3665353fef7420388adca2f51d398c6
work_keys_str_mv	AT seyedabbashashemi theeffectofconditionalconservatismoncostofequitycapital AT shekoofehfarahmand theeffectofconditionalconservatismoncostofequitycapital AT nasershamirzaeijeshvaghani theeffectofconditionalconservatismoncostofequitycapital AT seyedabbashashemi effectofconditionalconservatismoncostofequitycapital AT shekoofehfarahmand effectofconditionalconservatismoncostofequitycapital AT nasershamirzaeijeshvaghani effectofconditionalconservatismoncostofequitycapital
_version_	1718444679268139008

The Effect of Conditional Conservatism on Cost of Equity Capital

Ejemplares similares