KUALITAS LABA DAN PENGUNGKAPAN SUKARELA DAMPAKNYA TERHADAP BIAYA MODAL EKUITAS MELALUI ASIMETRI INFORMASI

This study aimed to examine the effect of earning quality and voluntary disclosure on cost of equity capital with information asymmetry as an intervening variable. The study was conducted by analyzing 118 manufacturing companies listed in Indonesia Stock Exchange during the years 2013 to 2015 by using path analysis. The results of this study indicate that information asymmetry mediating the relationship of earnings quality and voluntary disclosure on cost of equity capital. These findings indicate that the company may affect the cost of equity capital by minimize the degree of information asymmetry with improving earning quality and expanding voluntary disclosure.The reduced cost of equity capital caused by low rate of return required by investors because the information presented to minimize the level of information asymmetry. This study indicates that information has an important role to lowering information asymmetry and cost of equity capital, as indicated by the response of investors and other market participants to the information disclosed by company