This thesis would like to address whether the pricing of cost of debt on earnings quality would be affected by a firm’s equity investments. Self constructed measures in measuring parent-subsidiaries investment relationship and the percentage of investment in mainland China are applied to test the interaction relationship with earnings quality. Data from parent statements and consolidated statements are both obtained and form two parallel tests. The findings show that the negative relationship between earnings quality and cost of debt tend to be more pronounced in companies with more parent-subsidiaries investments and firms with relatively more investments in mainland China no matter in individual company level or consolidated level.