Gotti, Giorgio; Mastrolia, Stacy - In: The International Journal of Accounting 49 (2014) 2, pp. 190-220
cost of equity capital) and, further, the extent to which this information risk is mitigated by earnings quality. Our … persists after controlling for earnings quality. Furthermore, we partition our sample into firms from strong and weak investor … higher cost of equity capital, and that earnings quality does not significantly reduce the premium paid by these issuers. …