Effect of Earnings Management, Intellectual Capital Disclosures, Information Asymmetry and Firm Size To Cost of Equity Capital
Admadianto, Haris Novy
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Cost of Equity Capital as a proxy of the value of firm based on the assessment of accounting and capital markets. This assessment is more towards the fair value of the equity, as associate book value, earnings, stock prices and firm valuations. This firm valuation model in accordance with the ohlson model.This study examined the effect of earnings management, disclosure of intellectual capital, information asymmetry, and firm size to the firm value is proxied by the cost of equity capital. The case study on stock indexes in Indonesian go public companies in the form of JII and LQ 45 during the years 2004 to 2015. The sample used in this study were 183 companies on the index JII and 231 companies for LQ-45 index. The sampling technique purposive sampling method. Data analysis method used is multiple linear regression. The results showed that the asymmetry of information and firm size affect the cost of equity capital in the JII and LQ45. Meanwhile, earnings management, and disclosure of intellectual capital is not proven effect on the cost of equity capital. Means that research on both the stock index in Indonesia results are consistent.