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
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.
CAO Zeyong,ZHANG Junrui,SU Yang等. Impact of Comprehensive Income Disclosure on Debt Holder Pricing in the Context of De-Realization[J]. Chinese Journal of Management, 2024, 21(8): 1247-.
