The Effect of Audit Quality and Earnings Management on Cost of Equity

Abstract

The current study examines the effect of audit quality and earnings management on cost of equity. The current study used a sample of the 10 firms listed in EGX30 as of 2017 during the period of 2015-2017. To measure the variables, data were collected from auditor’s report, financial statements which were downloaded from the companies’ websites. To test the hypotheses, descriptive, correlation, and regression analysis were conducted using SPSS program. There is a positive insignificant association between the Audit quality and Cost of equity, There is a positive insignificant association between Earnings management and cost of equity.