ACCOUNTING QUALITY AND COST OF CAPITAL. THE CASE OF THE ROMANIAN LISTED COMPANIES

This paper focuses on the role of the financial information quality, under the issue of relevance and faithful representation, in the development of the cost of attracted capital. We use financial data issued by the Romanian companies listed on the regulated market of the Bucharest Stock Exchange, on a time lapse between 2012 and 2017. The used quantitative analysis assumed the testing of some econometric models which are well known in the literature, namely the Ohlson (1995) relevance model and the Jones (1991) one, for accurate representation. The results of the study identify a significant contribution of the financial information quality on the reduction of cost of capital, both regarding the relevance to investors and creditors and the conformation of accounting procedures with the regulations set by the standards. By introducing some control variables, such as size, respectively the growth of the company, the sense and the intensity of the relation was maintained.