الفهرس | Only 14 pages are availabe for public view |
Abstract Standards on the Cost of Capital and its Reflection on both Financial Distress and Stocks Prices Volatilities. So, the aim of this research is to determine effect of the cost of capital measured by the weighted average cost of capital as a mediating variable on the relationship between IFRS Convergence as an independent variable and both financial distress measured by Z-Score and stocks prices volatilities measured by the standard deviation of the rate of return on assets as dependent variables. In order to achieve research objectives, I conducted an empirical study using a sample of firms listed in The Egyptian Exchange, in EGX-100 index, numbering 59 companies, with 354 views (company-year) during the period from 2014 to 2019. The results of the empirical study can be summarized as follows: 1. There is a positive relationship between convergence With the International Financial Reporting Standards and the cost of capital, financial distress and stocks prices volatilities. 2. There is a positive relationship between the cost of capital and both financial distress and stocks prices volatilities. 3. There is a partial mediation for the cost of capital between the application of international financial reporting standards and the financial distress measured by Z-Score. 4. There is a full mediation for the cost of capital between the application of international financial reporting standards and stocks prices volatilities. |