Information asymmetry in stock market can increase the risk of investment which in turn increases the capital cost of firms. Bhattacharya (1979) proposed a hypothesis that states dividend can act as a powerful signal in order to solve information asymmetry problem. We measured information asymmetry by lack of earnings transparency. Therefore we examine the effect of earnings transparency on cap...

capital structure puzzle is a challenging issue in corporate finance. different researchers attempt to identify ways to determine optimized capital structure which minimizes firm’s cost of capital and maximizes its value, by proposing variety of theories. in line with forming new theories and introducing determinant variables, the absence of comprehensive research which simultaneously tests exi...

Introduction During the pioneering days of the electric utility industry, it was believed that utilities were natural monopolies, meaning that one utility could service a geographic area more cheaply than any combination of smaller utilities. More recently, the economic viability of transferring or wheeling electricity over long distances, the development of small-scale generators and efficient...

In this paper, the study attempts to determine the optimal capital investment in setup cost reduction and optimal lot sizing policies for an economic order quantity (EOQ) model with random yields. The setup cost is treated as the function of capital expenditure in technology. The study shows that the expected total annual cost functions with capital investment is convex and develop a solution p...

This paper examines the effect of accounting restatements on a firm’s cost of equity capital. We show that, on average, accounting restatements lead to both decreases in expected future earnings and increases in the firm’s cost of equity capital. Depending on the model used, relative percentage increases in the cost of equity capital average between 7 and 19% in the month immediately following ...

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in this paper, the study deals with the lead time and setup reduction problem in the vendor-purchaser integrated inventory model. the cost of capital (i.e., opportunity cost) is one of the key factors in making the inventory and investment decisions. lead time is an important element in any inventory system. the proposed model is presents an integrated inventory model with controllable lead tim...

Previous work was done to create a baseline capital cost model for the SFR in which case studies were performed to identify ways to decrease the capital costs while maintaining safety and performance. This thesis expands on the capital cost model to include uncertainty analysis, as well as performing qualitative cost evaluations for the fuel cycle and O&M costs. An uncertainty model was develop...