Cost of capital ≈ Cost of capital
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Declining Labor and Capital Shares Open
This paper presents direct measures of capital costs, equal to the product of the required rate of return on capital and the value of the capital stock. The capital share, equal to the ratio of capital costs and gross value added, does not…
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Does Integrated Reporting Matter to the Capital Market? Open
Integrated reporting () is an emerging international corporate reporting initiative to address limitations to extant corporate reporting approaches, which are commonly criticized for being both voluminous and disjointed. While is gaining …
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Banks Response to Higher Capital Requirements: Evidence from a Quasi-Natural Experiment Open
© The Author(s) 2018. Published by Oxford University Press on behalf of The Society for Financial Studies. All rights reserved. We study the impact of higher capital requirements on banks' balance sheets and their transmission to the real …
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Estimating the cost of capital for renewable energy projects Open
Many models in energy economics assess the cost of alternative power generation technologies. As an input, the models require well-calibrated assumptions for the cost of capital or discount rates to be used, especially for renewable energy…
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The Impact of Capital Structure on Financial Performance in Romanian Listed Companies Open
This research aims to establish the relationship between capital structure and financial performance in 196 Romanian companies listed on the Bucharest Stock Exchange and operating in the manufacturing sector, over a period of eight-years (…
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The Sources of Capital Misallocation Open
We develop a methodology to disentangle sources of capital “mis-allocation,” i.e., dispersion in value-added/capital. It measures the contributions of technological/informational frictions and a rich class of firm-specific factors. An appl…
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The role of capital costs in decarbonizing the electricity sector Open
Low-carbon electricity generation, i.e. renewable energy, nuclear power and carbon capture and storage, is more capital intensive than electricity generation through carbon emitting fossil fuel power stations. High capital costs, expressed…
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Do Markets Punish or Reward Corporate Social Responsibility Decoupling? Open
This article analyzes the relationship between corporate social responsibility (CSR) decoupling and financial market outcomes. CSR decoupling refers to the gap between CSR disclosure and CSR performance. More specifically, we analyze the e…
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Higher cost of finance exacerbates a climate investment trap in developing economies Open
Finance is vital for the green energy transition, but access to low cost finance is uneven as the cost of capital differs substantially between regions. This study shows how modelled decarbonisation pathways for developing economies are di…
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Trust, social capital, and the bond market benefits of ESG performance Open
We investigate whether a firm’s social capital and the trust that it engenders are viewed favorably by bondholders. Using firms’ environmental and social (E&S) performance to proxy for social capital, we find no relation between social cap…
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Carbon emissions and the cost of debt in the eurozone: The role of public policies, climate‐related disclosure and corporate governance Open
Over time, investors have become increasingly aware of the risks associated with a transition to a low‐carbon economy. This study investigates the association between carbon emissions and the cost of debt financing for a sample of firms fr…
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The WACC Fallacy: The Real Effects of Using a Unique Discount Rate Open
In this paper, we test whether firms properly adjust for risk in their capital budgeting decisions. If managers use a single discount rate within firms, we expect that conglomerates underinvest (overinvest) in relatively safe (risky) divis…
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Intellectual capital efficiency and organisational performance Open
Purpose The purpose of this paper is to, the first of its kind, investigate the relationship between the intellectual capital efficiency and organisational performance of the pharmaceutical sector in Bangladesh, an emerging economy that en…
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Enterprise Risk Management and the Cost of Capital Open
Enterprise risk management (ERM) is a process that manages all risks in an integrated, holistic fashion by controlling and coordinating any offsetting risks across the enterprise. This research investigates whether the adoption of the ERM …
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Cost of Equity of Coal-Fired Power Generation Projects in Poland: Its Importance for the Management of Decision-Making Process Open
Our knowledge of discount rates plays an important role both in the discounted cash flow decision-making process and in the later phases of a project’s lifetime. It is useful than both for management and cash-flow monitoring purposes at op…
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AI-Based Prediction of Capital Structure: Performance Comparison of ANN SVM and LR Models Open
Capital structure is an integral part of the corporate finance that sources the funds to finance growth and operations. Managers always have to maintain value of the firm to be higher than the cost of capital in order to maximize the share…
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Moderating effects of corporate governance mechanism on the relation between capital structure and firm performance Open
The purpose of this study is to examine the moderating effect of corporate governance on the relationship between capital structure and firm performance. This study uses secondary data in the form of financial reports at the end of 2019 fr…
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Carbon risk, cost of debt financing and the moderation effect of media attention: Evidence from Chinese companies operating in high‐carbon industries Open
The effect of carbon risk on the debt capital market has become increasingly prominent under carbon constraints. We use a panel regression model to examine the relationship between carbon risk and the cost of debt financing and the moderat…
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Independent Directors and CSR Disclosures: The moderating effects of proprietary costs Open
The aim of this paper is two‐fold: (i) to evidence if the role of independent directors regarding the disclosure of corporate social responsibility (CSR) information is determined by the aim of protecting shareholders' value; and (ii) to h…
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Does corporate social responsibility affect cost of capital in China? Open
Firms in China with higher corporate social responsibility (CSR) performance may not substantially reduce their cost of equity capital versus firms in developed countries. To compare the different capital structures between developing and …
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Environmental, Social, and Governance Disclosure, Ownership Structure and Cost of Capital: Evidence from the UAE Open
The capital structure decision is one of the most vital financial decisions of the corporation that consists of determining the optimal combination of equity and debt for the companies that would reduce the cost of capital. The examination…
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Accounting information quality, governance efficiency and capital investment choice Open
This paper examines the relationship between accounting information quality and capital investment choice from the perspective of accounting information's governance function. Measuring capital investment choice as the correlation of growt…
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The determinants of capital structure: Evidence from public listed companies in Malaysia, Singapore and Thailand Open
We investigate the determinants of capital structure of public listed companies on Bursa Malaysia, Singapore Stock Exchange and Thailand Stock Exchange from 2004 to 2013. We also investigate how firm-specific factors such as profitability,…
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Impacts of Capital Structure on Performance of Banks in a Developing Economy: Evidence from Bangladesh Open
The capital structure decision plays an important role in the performance of a firm. Therefore, there have been many studies inspecting the rapport of capital structure with the performance of firms, although the findings of these studies …
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Capital Structure Theory: An Overview Open
Capital structure is still a puzzle among finance scholars. Purpose of this study is to review various capital structure theories that have been proposed in the finance literature to provide clarification for the firms’ capital structure d…
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HOW SHOULD CAPITAL BE TAXED? Open
This survey discusses how capital should be taxed in advanced economies. We review the theoretical optimal tax literature, survey empirical studies on the distribution of capital and the distortionary costs of capital taxation, and analyze…
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Performance, working capital management, and the liability of smallness: A question of opportunity costs? Open
This article studies the relationship between working capital management and firm operating performance and focuses on the moderating effect of size. We use a large sample of 56,221 small, medium, and large firms from France, Germany, and …
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The Financial Cost of Carbon Open
Climate finance is first and foremost a risk‐management problem, which means three things for investors. First, prudent investors will seek to hedge climate change risk by reducing their exposure to this risk. Second, investors will demand…
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Energy Sector Risk and Cost of Capital Assessment—Companies and Investors Perspective Open
This paper aims to identify the costs of capital in a group of companies from the energy sector by including an investor and market risk approach. The study also concerns the company’s Weighted Average Cost of Capital (WACC) cost intra-ind…
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Sustainability Performance and the Cost of Capital Open
This study examines the association between firms’ environmental, social, and governance (ESG) performance and the cost of capital for the largest European firms listed on the STOXX Euro 600 in a large panel from 2002 to 2018. We find that…