The main objective of this study is to analyze the influence of discretionary accruals and corporate governance on the cost of equity capital in Thai listed companies. Two groups of independent variable are comprised in this study: 1. discretionary accruals estimated from Performance matched discretionary accruals model and 2. corporate governance mechanisms included: board independence, board size, CEO-chair duality, audit committee financial expertise, audit opinion, managerial ownership and institutional shareholders. The dependent variable in this study is the cost of equity capital estimated from the capital assets pricing model (CAPM). Using unbalanced panel data with fixed effects model, this study reveals that companies with greater discretionary accruals and higher proportion of managerial ownership are likely to have higher cost of equity capital. In contrast, the companies with greater board independence, board size, audit committee financial expertise, and institutional shareholders are likely to experience lower cost of equity capital.