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Does Corporate Social Responsibility Moderate the Effect of Information Asymmetry and Earnings Management on Cost of Equity Capital?

Year: 2024

Type: article

Abstract: This study explores the relationship between information asymmetry, earnings management, Corporate Social Responsibility (CSR), and cost of equity capital (CEC). The results show that information asymmetry has a significant influence on CEC, which indicates that information uncertainty can increase the cost of equity capital of a company. On the other hand, earnings management practices have not been shown to have an effect on CECs, reflecting that investors may be more focused on long-term performance than short-term financial statement manipulation. In addition, CSR cannot moderate the influence of information asymmetry on CEC or the influence of earnings management on CEC.

Source: International Journal Of Science Technology & Management

DOI: 10.46729/ijstm.v5i5.1181

Authors: Dian Urna Fasihat, Rizkiana Iskandar

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W4403733227

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