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The Effect of Fundamental Risk of Listed Companies on the Market Pricing of Accruals Quality

¹ Department of Applied Economics, Business School of Zhejiang University City College, Hangzhou, China
² Department of Applied Economics, Business School of Zhejiang University City College, Hangzhou, China
³ Department of Applied Economics, Business School of Zhejiang University City College, Hangzhou, China
⁴ Department of Applied Economics, Business School of Zhejiang University City College, Hangzhou, China
⁵ Department of Applied Economics, Business School of Zhejiang University City College, Hangzhou, China
⁶ Department of Applied Economics, Business School of Zhejiang University City College, Hangzhou, China
⁷ Department of Applied Economics, Business School of Zhejiang University City College, Hangzhou, China
⁸ Department of Applied Economics, Business School of Zhejiang University City College, Hangzhou, China
⁹ Department of Applied Economics, Business School of Zhejiang University City College, Hangzhou, China
¹⁰ Department of Applied Economics, Business School of Zhejiang University City College, Hangzhou, China
¹¹ Department of Applied Economics, Business School of Zhejiang University City College, Hangzhou, China
¹² Department of Applied Economics, Business School of Zhejiang University City College, Hangzhou, China
¹³ Department of Applied Economics, Business School of Zhejiang University City College, Hangzhou, China
¹⁴ Department of Applied Economics, Business School of Zhejiang University City College, Hangzhou, China

iBusiness·Volume 05 (2013)·Pages 6–12·Published 11 April 2013·DOI10.4236/ib.2013.51B002

Abstract

Motivated by the theoretical results of Yee (2006), with accruals quality, the author of this paper studied enterprises' earnings quality management, and analyzed the effect of accruals quality on capital cost, which is rising with the increase of basic risks, and extended and applied to his study the theoretical study of Francis, LaFond, Olsson and Schipper et al .

KeywordsCost of CapitalAccruals QualityEarnings QualityFundamental Risk

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Core J E, Guay W R, Verdi R S. Is Accruals Quality a Priced Risk Factor? [J]. Journal of Accounting and Economics, 2008, 46, (1):2-22.

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The Effect of Fundamental Risk of Listed Companies on the Market Pricing of Accruals Quality

Abstract

References (6)