The effect of comparability of accounting statements on capital cost of Brazilian publicly traded companies

Abstract

The present study aims at analyzing the effect of comparability of accounting statements on equity cost and capital cost of debt in Brazilian publicly traded companies. The sample included 89 companies which data refer to the time frame from 2015 to 2022 by means of data regression panel. Results evidenced that intertemporal comparability reduces cost of equity capital and cost of debt. As to comparability among companies, it is negatively related to cost of equity capital only. So, the present study generates contributions as it provides evidence that comparability of accounting statements is a capital cost-reducing factor, especially the cost allocated by investors on the company.