The market pricing of accruals quality
... differences signiﬁcant at the 0.001 level). Controlling for other variables known to
affect debt costs (leverage, ﬁrm size, return on assets, interest coverage, and earnings
volatility), the results suggest that ﬁrms with the best AQ enjoy a 126 basis point (bp)
lower cost of debt relative to ﬁrms w ...