자본비용의 동인: 정보위험 대 영업위험

This paper examines the empirical evidence whether residual accruals volatility as a proxy for information risk and operating risk are associated with a firm’s cost of capital. Generally speaking, several prior studies document that increasing the information reduces the transaction cost and cost of capital due to reduction of estimation risk. However, recent papers show that previous empirical findings are likely driven by operating risk rather than information risk. From this motivation from these previous papers, we test these findings and evidences using Korean non-financial firms listed in KOSPI. The empirical results are as follows: First, I find that information risk drives the cost of capital as previous results. Second, however, I show that after controlling for operating risk, information risk does not drive the cost of capital, which implies that there is no evidence for determinant of information risk. That is, the key determination of the cost of capital is operating risk rather than information risk. This result implies that firm cash flow affect investors and credit holders when firm has financing fund need to net project.