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

Abstract

The annual samples of 9370 companies from China’s Shanghai and Shenzhen A-share market which during the period 2004 to 2013 were used as the object of study for this paper. According to De Franco et al. (2011) comparability models were used to measure accounting information comparability for companies. The accounting information comparability was proved and impacted on the relationship between the quality of accounting information and the cost of creditor’s capital. From the findings of the research, under the controlled of other factors, the comparability of accounting information had a significant negative effects on the debt capital cost.