Earnings Management and Cost of Debt of Brazilian Privately Held Companies

Beiruth, Aziz Xavier; Brugni, Talles Vianna; Marinho, Mônica Lourdes; Costa, Fábio Moraes da

doi:10.1080/10978526.2020.1857649

Cited by 1 publication

(1 citation statement)

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“…In this regard, Beiruth et al (2021) and Le et al (2021) found that accrual earnings management positively affects the cost of debt. Low earnings quality leads to higher risk as the accounting information provided by the company becomes less useful for predicting future cash flow returns and the company's financial stability.…”

Section: Introductionmentioning

confidence: 99%

Accrual Earnings Management, Real Earnings Management, and Cost of Debt: Does Capital Structure Matter?

Firmansyah,

Prakosa,

Al ‘Alam

et al. 2024

JRAK

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This study looks at how accrual and real earnings management affect the cost of debt. This study also considers capital structure as a moderating variable. This quantitative study draws on data from the financial statements of manufacturing businesses listed on the IDX from 2016 to 2020. The research data was gathered from www.idnfinancial.com. Purposive sampling is employed in this study, with a sample size of 565 observations. Multiple linear regression analysis was employed to evaluate hypotheses with panel data. According to this study, accrual earnings management is unrelated to the cost of debt. Meanwhile, real earnings management correlates favorably with the cost of debt. The moderating influence of capital structure is often missing or minor in the link between real earnings management and the cost of debt. This research enriches the knowledge discussing the hazards of earnings management performed by managers in organizations with specific debt levels.

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Section: Introductionmentioning

confidence: 99%