THE COST OF EQUITY CAPITAL: A RECONSIDERATION
نویسندگان
چکیده
منابع مشابه
Firm 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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Executive pay disparity, as measured by chief executive officer (CEO) pay slice (CPS), is positively associated with the implied cost of equity, even after controlling for other determinants of the cost of equity. The difference in the cost of equity can explain 43% of the difference in the valuation effect attributable to CPS reported by Bebchuk, Cremers, and Peyer (2011). Further analysis sho...
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The cost of equity capital has been an important topic to both academics and practitioners. In this study, we examine the effect information technology (IT) intensity on the industry cost of equity capital. Findings generally support the idea that IT intensity is a significant factor driving industry cost of equity capital. Further, an interaction between IT intensity and time suggests that IT ...
متن کاملWhat Affects the Implied Cost of Equity Capital?
We estimate implied cost of equity capital (re) for a sample of firms from 1984 to 1998 using the Ohlson and Juettner (2000) model that does not make restrictive assumptions about clean surplus and payout policies. We find that re is strongly positively associated with conventional risk factors such as earnings variability, systematic and unsystematic return volatility, and leverage, and is neg...
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ژورنال
عنوان ژورنال: The Journal of Finance
سال: 1978
ISSN: 0022-1082
DOI: 10.1111/j.1540-6261.1978.tb02026.x