Intellectual Capital and Earnings Attributes

It is contended among the accounting researchers that information asymmetry could be reduced through disclosure of accounting information pertaining to quality of earnings and recognition of intellectual capital. Correspondingly, this study examined the effect of accounting earnings attributes and intellectual capital on information asymmetry and consequently cost of equity. The findings of the study has shown that to attract large number of investors and concurrently minimizing the cost of capital, firms generally disclose substantial sets of information especially those related to the earnings attributes and also recognize of intellectual capital in order to facilitate investors in decision process.

Autorentext

Mohammadghorban Mehri is a lecturer at the Department of Accounting, Ghorveh Branch, Islamic Azad University, Ghorveh, Iran. He holds a PhD in accounting awarded by the Universiti Teknologi Malaysia (UTM). He is an author of over 25 internationally refereed articles in areas of intellectual capital and earnings attributes.