University of Twente Student Theses
Earnings quality and the cost of debt of German non-listed firms and the impact of leverage
Ramerman, J.N. (2019) Earnings quality and the cost of debt of German non-listed firms and the impact of leverage.
|
PDF
1MB |
| Abstract: | In this study, the relationship between earnings quality of German non-listed firms and the cost of debt is examined. A sample of 6,821 non-listed firms between the period 2013 and 2015 is used. The relationship between earnings quality and the cost of debt is examined by using OLS regressions. The examination shows that the earnings quality of non-listed firms is negatively related to those firms’ effective interest cost. The results in this study are consistent with the idea that earnings are important for lenders to better predict default risk and the repaying capacity of a loan. Next, this study finds that leverage has a negative association with earnings quality and the cost of debt. Finally, through moderation- and mediation analyses, this study finds that leverage does not have a moderating effect on the relationship between earnings quality and the cost of debt, but has a mediating (indirectly) effect. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/77862 |
| Export this item as: | BibTeX EndNote HTML Citation Reference Manager |
Show download statistics for this publication
Show download statistics for this publicationRepository Staff Only: item control page