Does corporate performance predict the cost of equity capital?
نویسندگان
چکیده
منابع مشابه
Relationship between Cost of Equity Capital And Voluntary Corporate Disclosures
The relationship between disclosure and cost of equity capital has always been interesting not only for managers, but for investors as well. Economic theory suggests that by increasing the level of corporate reporting firms not only increase their stock market liquidity, but they also decrease the investors’ estimation risk, arising from uncertainty about future returns and payout distributions...
متن کاملThe Role of Managers Ownership in the Relationship between the Disclosure of Corporate Ethical & Social Responsibility & Cost of Equity
Background: Accurate and timely disclosure of information is one of the most important tools for company managers to reduce the cost of capital. The purpose of this study is to investigate the role of managerschr('39') ownership in the relationship between the disclosure of corporate social and moral responsibility and the cost of equity in companies listed on the Tehran stock exchange. Method...
متن کاملDoes Mandatory Adoption of International Accounting Standards Reduce the Cost of Equity Capital?
This paper examines whether the mandatory adoption of International Accounting Standards (IAS) in the European Union (EU) in 2005 reduces the cost of equity capital. Using a sample of 6,456 firm-year observations of 1,084 EU companies during the period of 1995 to 2006, I find evidence that mandatory introduction of IAS, on average, significantly reduces the cost of equity for mandatory adopters...
متن کاملFirm Specific Information and the Cost of Equity Capital
We develop a comprehensive and large-sample measure of a firm’s information quality. The measure is the ratio of firm-specific return variation to firm-specific cash-flow variation. Empirical evidence supports the validity of our measure. Using this measure, we find that cost of equity capital decreases by about -0.4% on an annual basis if a firm’s information quality increases by one standard ...
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ژورنال
عنوان ژورنال: American Journal of Social and Management Sciences
سال: 2011
ISSN: 2156-1540,2156-1559
DOI: 10.5251/ajsms.2011.2.1.26.33