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| Impact of Comprehensive Income Disclosure on Debt Holder Pricing in the Context of De-Realization |
| CAO Zeyong，ZHANG Junrui，SU Yang，LI Wenting |
| 1. Xi’an Jiaotong University, Xi’an, China; 2. Xi’an Jiaotong University City College, Xi’an, China; 3. Longi Green Energy Technology Co., Ltd., Xi’an, China |
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Abstract From the research perspective of the usefulness of accounting information for decision-making, this study examines the impact of comprehensive income disclosure on the debt holder pricing. Using the Chinese A-share listed companies from 2014 to 2020 as samples, this study empirically examines the relationship between other comprehensive income levels and debt financing costs in the context of de-realization. The empirical study finds that the proportion of other comprehensive income in total comprehensive income has a risk disclosure effect, which can alleviate information asymmetry in debt financing, leading to a significant positive correlation between the levels of other comprehensive income and the costs of debt financing. The financialization of enterprises can provide a reference for this pricing effect, with the positive correlation mainly occurring in non-financial enterprises with a higher degree of de-realization. The levels of other comprehensive income mainly increase the costs of debt financing by reducing accounting conservatism and increasing the risk premium demanded by debt holders.
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Received: 23 April 2023
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