scholarly journals Financial Disclosure and the Cost of Equity Capital: The Empirical Test of the Largest Listed Companies of Kazakhstan

2017 ◽  
Vol 4 (3) ◽  
pp. 5-17 ◽  
Author(s):  
Aizhan Baimukhamedova ◽  
◽  
Gulzada Baimukhamedova ◽  
lbina Luchaninova
Keyword(s):  
Empirical Test ◽  
Listed Companies ◽  
Equity Capital ◽  
Financial Disclosure ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
The Cost

Shareholder rights, financial disclosure and the cost of equity capital

2006 ◽  
Vol 27 (2) ◽  
pp. 175-204 ◽  
Author(s):  
C. S. Agnes Cheng ◽  
Denton Collins ◽  
Henry He Huang
Keyword(s):  
Equity Capital ◽  
Financial Disclosure ◽  
Shareholder Rights ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
The Cost

scholarly journals The Impact of Employee Stock Ownership Plan on the Cost of Equity Capital: Evidence from China

2021 ◽  
Vol 2021 ◽  
pp. 1-17
Author(s):  
Fu Cheng ◽  
Shanshan Ji
Keyword(s):  
Listed Companies ◽  
Equity Capital ◽  
Stock Ownership ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Equity Financing ◽  
Employee Stock Ownership ◽  
Chinese Listed Companies ◽  
The Cost ◽  
The Impact

Due to the immaturity of bond market and the defects of internal governance structure, Chinese-listed companies have a strong preference for equity financing. How to reduce the cost of equity capital is particularly important for Chinese-listed companies. As an equity incentive system, employee stock ownership plan (ESOP) can reduce the agency conflicts among shareholders, executives, and employees to some extent. These reduced conflicts will, in an efficient capital market, be reflected in a lower cost of equity capital. This paper investigates whether the implementation of ESOP in a new era in China affects the cost of equity capital and further explores whether the impact of ESOP on the cost of equity capital is affected by the ownership nature, the firm size, and the contract design of ESOP. The results show that the implementation of ESOP reduces the cost of equity capital of enterprises. Compared with state-owned enterprises and large enterprises, the implementation of ESOP is more likely to reduce the cost of equity capital in non-state-owned enterprises and small enterprises. Furthermore, the reduction effect of ESOP on the cost of equity capital is influenced by the contract design of ESOP. This study not only enriches the literature on the relationship between employee stock ownership and the cost of equity capital but also provides a new idea for listed companies to reduce the cost of equity financing.

scholarly journals Director Networks and Cost of Equity Capital: Based on “Busy Director Hypothesis” Analysis

2021 ◽  
Vol 2021 ◽  
pp. 1-15
Author(s):  
Sai Qiu ◽  
Xin Sun
Keyword(s):  
Listed Companies ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Financing Decisions ◽  
Negative Effect ◽  
New Ideas ◽  
The Cost ◽  
The Relationship ◽  
Negative Regulatory Role

This paper uses the data of Shanghai and Shenzhen A-share-listed companies from 2008 to 2018 to construct the director networks as an indicator to explore the relationship between the company’s director networks and the cost of equity capital and the influence of nature of property rights and the ownership structure on the aforementioned relationship. The research results demonstrate that director networks cannot effectively reduce the cost of equity capital. This conclusion verifies the “busy director hypothesis.” With the increase in the director networks centrality, the increase in the cost of equity capital in non-state-owned listed companies is more significant compared with state-owned listed companies; equity concentration plays a significant negative regulatory role in the director networks centrality and affects the cost of equity capital. Compared with the networks centrality of independent director, the networks centrality of nonindependent director has a stronger negative effect on the cost of equity capital. This article broadens the perspective of corporate governance research and provides new ideas for listed companies to make financing decisions.

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