Accounting Information Comparability and Debt Capital Cost Empirical Evidence from Chinese Listed Companies

Su, Roger; Yang, Zailin; Dutta, Amitabh

doi:10.18488/journal.aefr.2018.81.90.102

Cited by 9 publications

(8 citation statements)

References 13 publications

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“…Specifically, we follow Sun et al (2006) and Lian et al (2011) and use the sum of short-term loans, long-term loans, and noncurrent liabilities due within 1 year to measure the total bank loan. The cost of bank financing is then calculated as interest expense divided by the total bank loan (COST).…”

Section: Other Robustness Tests 16mentioning

confidence: 99%

Corporate environmental information disclosure and bank financing: Moderating effect of formal and informal institutions

Ruan

Shi

et al. 2022

Bus Strat Env

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This paper investigates the effect of the quality of environmental information disclosure of firms on their bank financing and further examines the moderating effect of formal and informal institutions on this effect using China as a laboratory. We find that the quality of environmental information disclosure is positively (negatively) related to the scale (cost) of bank financing. Furthermore, the formal institution (proxied by the official issuance of the Green Credit Guidelines) strengthens the above relationship. Moreover, the informal institution (proxied by bank connection) weakens the association between the quality of environmental information disclosure and bank financing. Our results are valid after addressing the potential endogeneity between environmental information disclosure and bank financing and remain unchanged in various robustness tests. Our findings affirm the decision usefulness of corporate environmental information disclosure that can be used by companies as an effective strategy for obtaining bank financing and the ethical integrity of borrowers to banks as an important group of capital market participants.

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Section: Other Robustness Tests 16mentioning

confidence: 99%

Corporate environmental information disclosure and bank financing: Moderating effect of formal and informal institutions

Ruan

Shi

et al. 2022

Bus Strat Env

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“…According to Sánchez-Ballesta & García-Meca ( 2005), a qualified opinion has a negative impact on financial information users, influencing electoral behaviour, since the economic effects of public policies are reflected in the financial information (Brusca & Montesinos, 2006). Sun et al, (2006) found little impact of qualified audit opinions on the ability to borrow bank loans when local or central governments have a strong influence on companies. Edmonds et al (2020), point out that qualified audit opinions have an impact on municipal market bonds since investors value the information content of an audit report, penalising counties and local governments with qualified/adverse audit opinions…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Determining factors in modified audit reports: evidence from Portuguese municipalities

Jesus

Almeida²,

Silva

2022

Rev. contab.

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Factors influencing audit reports have been widely studied in the private sector, but few studies have sought to assess the reasons for modified reports or qualified opinions in the public sector. The objective of our work is to analyse the determining factors that influence municipalities’ audit reports. For this, we analysed three dimensions: factors related to the characteristics of the municipality, factors related to the characteristics of the auditor, and political factors. Our conclusions demonstrate that financial aspects, excluding debt, do not significantly influence an auditor's opinion. However, the size of the audit firm and emphasis of matter in the audit report do affect the likelihood of a qualified opinion. Nevertheless, there is no relationship between differing political affiliations of the executive and deliberative bodies and the type of audit report or audit opinion. We found no relationship between a modified report and the studied variables. Los factores determinantes en la emisión de un informe de auditoría han sido ampliamente estudiados en el sector privado, pero pocos estudios han tratado de evaluar las causas para emitir un informe modificado u opinión calificada en el sector público. El objetivo de nuestro trabajo es analizar los factores determinantes en la emisión del informe de auditoría de los municipios. Para ello, se analizaron tres dimensiones: factores relacionados con las características del municipio; factores relacionados con las características del auditor; y factores políticos. Nuestras conclusiones nos permiten ver que las dimensiones financieras no influyen significativamente en la opinión del auditor, excepto por el endeudamiento; Sin embargo, el tamaño de la firma de auditoría, la existencia de énfasis influyen positivamente en la opinión del auditor. Pero, diferentes colores políticas entre la Asamblea Municipal y el Ayuntamiento no influencian la opinión del auditor ni el tipo de informe. Con respecto al vínculo entre un informe modificado y las variables estudiadas, no encontramos relación.

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“…Comparability in accounting reduces the cost of information processing and undermines uncertainty about a firm's potential credit risk in both public capital markets [38] and private loans [39]. It helps lower the cost of debt [40] and the cost of equity [41] and assists businesses in accessing trade credit [42]. Thus, comparability capability of financial statements also has an impact on the value created for the stockholders and owners' equity return [43].…”

Section: Financial Statement Comparability and Financial Performancementioning

confidence: 99%

Corporate Social Responsibility Disclosure and Financial Performance: The Mediating Role of Financial Statement Comparability

et al. 2021

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The aim of this study is to investigate the relationship between corporate social responsibility (CSR) disclosure and financial performance with the consideration of the mediating role of financial statement comparability (FSC) for a sample of Vietnamese listed firms. We used content analysis of the information related to the GRI Standards on annual reports in order to construct CSR disclosure score. We used a dataset of 1125 firm-year observations, covering 225 firms listed on Vietnam’s stock market in the period 2014–2018. Applying OLS and GMM estimation methods, Sobel test, and using different proxies of the mediator variable to increase the robustness, we obtained two remarkable conclusions. First, CSR disclosure has a positive impact on the financial performance of listed companies in Vietnam. Second, there is a complementary mediation effect of financial statement comparability in the above relationship. Our results suggest that it is necessary to develop a legal framework for the practice and disclosure of CSR as well as to apply the international accounting standards in the Vietnamese stock market.

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Accounting Information Comparability and Debt Capital Cost Empirical Evidence from Chinese Listed Companies

Cited by 9 publications

References 13 publications

Corporate environmental information disclosure and bank financing: Moderating effect of formal and informal institutions

Corporate environmental information disclosure and bank financing: Moderating effect of formal and informal institutions

Determining factors in modified audit reports: evidence from Portuguese municipalities

Corporate Social Responsibility Disclosure and Financial Performance: The Mediating Role of Financial Statement Comparability

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