This paper elaborates on a new default-based cost of capital estimation for private-held firms. We test the model’s ability to incorporate systematic risk and size premium. Results highlight positive statistically significant effect CAPM expected return premiums this novel measure. Beyond utility in practice private equity valuation, preliminary results are promising application larger cross-co...

In the twenty first century, intellectual capital appears as one of the most important strategic assets for the success of knowledge-intensive organizations. The aim of this chapter is to examine the effect of intellectual capital on the organizational performance of banking sector operating in Kuching Malaysia. In this study, Integrated Intellectual Capital Model (IICM) is used to test the rol...

Does capital-embodied technological change play an important role in shaping labor market outcomes? To address this question, we develop a model with vintage capital and search-matching frictions where irreversible investment in new vintages of capital creates heterogeneity in productivity among both vacant and matched firms. We demonstrate that capital-embodied technological change reduces lab...

This article contrasts two incompatible paradigms of economics and their implication for economic growth. The first paradigm is consistent with the micro-foundations of neoclassical theory, which assume that all goods and services are produced from other goods plus value added by some combination of capital and labor. The theory does not explain growth, but simply assumes that technological pro...

The Wharton Financial Institutions Center provides a multidisciplinary research approach to the problems and opportunities facing the financial services industry in its search for competitive excellence. The Center's research focuses on the issues related to managing risk at the firm level as well as ways to improve productivity and performance. The Center fosters the development of a community...

This study provides new estimates of systematic risk and the cost of equity capital for the pharmaceutical, biotechnology, and medical device sectors using data for firms with publicly-traded stock on U.S. exchanges during 2001-2005 and 2006-2008. Two frameworks are employed for estimating firms’ risk and the cost of equity capital: (1) the capital asset pricing model, and (2) the Fama-French t...

As a sustainable construction method, prefabrication has become popular in many nations. However, there are many challenges for prefabrication, especially in terms of cost. Previous studies have revealed that higher capital cost was the most important barrier to the implementation of prefabrication. Thus, the objective of this study is to explore and evaluate the critical factors affecting the ...