Recognized with numerous awards for its unparalleled craftsmanship, FLOS has cultivated creative collaborations with great lighting artists resulting to eclectic collections of functional yet sophisticated pieces and commercially successful products that can be found in many upscale homes, hotels and industrial settings.
The FLOS collections feature an extensive and versatile range of lighting fixtures that creates a dramatic ambiance in any space.
Alternatively, Core, Guay, and Verdi (2008) (CGV) suggest that FLOS use a misspecified model to test the hypothesis that accruals quality is a priced risk factor.
Consistent with FLOS, we find a negative relationship between the quality of accruals and the cost of debt capital to insurers.
Empirically, FLOS purport to show that information risk is a priced risk factor, supporting the model of Easley and O'Hara (2004).
With regard to the pricing of information risk into the cost of debt, FLOS document that poorer accounting quality results in higher debt costs for firms.
Studies such as FLOS and CGV use data from multiple industries to calculate the effects of accounting quality on the cost of equity.
When considering standard debt mechanisms, FLOS provide empirical evidence to support this theory.
Again, FLOS claim to show that firms with poor accruals quality have high cost of equity.