The impact of the predictive ability of accounting earnings on the cost of capital

Abstract

The research aims to study the impact of the predictive ability of accounting profits  on the cost of capital in companies listed on the Qatar Stock Exchange. To achieve The research aims to study the impact of the predictive ability of accounting profits othis goal, the researcher used the descriptive approach to analyze the published financial data of companies listed on the Qatar Stock Exchange, which number 37 companies during the period from 2019 to 2023. They were selected based on the availability of the necessary financial data. The researcher also used multiple statistical analysis methods, including multiple regression, to evaluate the relationship between the independent variable (predictive ability of profits) and the dependent variable (cost of capital). The study found a weakness in the level of predictive ability of profits in the companies under study. It also found an inverse significant relationship between the predictive ability of accounting profits and the cost of capital. The results showed that companies with high predictive ability have lower capital costs, which reflects investor confidence and reduces the degree of risk.