Dynamics of capital markets and its impact on the cost of equity

2012 ◽  
Vol 7 (2) ◽  
pp. 365-386 ◽  
Author(s):  
Dimiter N. Nenkov
Keyword(s):  
Capital Markets ◽  
Cost Of Equity ◽  
The Cost

Governance Transparency and the Institutions of Capitalism

2014 ◽  
pp. 386-412
Author(s):  
Raj Aggarwal ◽  
John W. Goodell
Keyword(s):  
Transaction Costs ◽  
Capital Markets ◽  
Stock Markets ◽  
Corporate Ownership ◽  
Cost Of Equity ◽  
Financial Architecture ◽  
The Cost ◽  
Governance Transparency ◽  
Business Exchange ◽  
The Relationship

This chapter explores the relationship between governance transparency and institutions of capitalism. It considers two major components of governance transparency in a country: disclosure regarding self-dealing and disclosure regarding ultimate corporate ownership. It also examines the effects of governance transparency on some of the fundamental mechanisms of capitalism, including transaction costs and the institutions of business exchange. Some evidence of the importance of governance transparency in the structure of capital markets is presented. The chapter reviews how governance transparency is measured and how it influences the culture of equity, the cost of equity, participation in stock markets, and a nation’s financial architecture.

scholarly journals Leverage and the Cost of Capital: Some Tests Using Nepalese Data

2007 ◽  
Vol 3 (1) ◽  
pp. 85-91 ◽  
Author(s):  
Hari Bahadur Khadka
Keyword(s):  
Capital Structure ◽  
Capital Markets ◽  
Cost Of Capital ◽  
Traditional Approach ◽  
Cost Of Equity ◽  
Business Studies ◽  
Interest Charge ◽  
The Cost ◽  
The Relationship ◽  
The Capital Structure

This paper is devoted to test the MM’s propositions about the relationship between leverage and cost of capital in the context of Nepalese capital markets. The main objective of the study is to determine whether the firms' overall cost of capital and cost of equity decline with the increasing use of leverage. The results showed a negative but insignificant beta value of the relationship between leverage and the overall cost of capital. Therefore the leverage may not be regarded as contributing variable to the cost of capital function for Nepalese firms. But finding contradicts with the traditional approach of the capital structure theories. It is further concluded that the cost of capital declines not only with leverage because of the tax deductibility feature of interest charge. The relationship between the cost of equity and leverage is also strongly negative. Besides leverage, the size, and D-P Ratio are other important variables that affect the cost of capital in Nepalese context.Journal of Nepalese Business Studies 2006/III/1 pp. 85-91

Control Structure, Government Credibility and the Cost of Equity of Newly Privatized Firms

2008 ◽  
Author(s):  
Hamdi Ben Nasr ◽  
Narjess Boubakri ◽  
Jean-Claude Cosset
Keyword(s):  
Control Structure ◽  
Cost Of Equity ◽  
Privatized Firms ◽  
The Cost

Management Forecasts and the Cost of Equity

2009 ◽  
Author(s):  
Mei Feng ◽  
Chan Li ◽  
Zhaoyang Gu
Keyword(s):  
Management Forecasts ◽  
Cost Of Equity ◽  
The Cost

Segmented Capital Markets and the Cost of External Finance

2000 ◽  
Author(s):  
Matthew T. Billett ◽  
Jon A. Garfinkel
Keyword(s):  
Capital Markets ◽  
External Finance ◽  
The Cost
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