Institutional Ownership and Cost of Capital: An International Study
نویسندگان
چکیده
منابع مشابه
Cost of Capital and the Role of Institutional Ownership
We examine the relationship between the institutional ownership and the cost of capital. Using firm-level data for the period from 1990 to 2006, we find that changes in dedicated (transient) ownership generally lower (increase) the investee’s cost of capital. Dividing the data into highversus low-leverage investees, we find that highly levered investees benefit the most from an increase in dedi...
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Neoclassical models postulate that firms’ investment is determined by expected profitability and the cost of capital. Capital market imperfections, caused by information asymmetries and agency costs, lead to a modified investment scenario, where the external cost of capital is higher than the cost of internal funds. This, in turn, leads to the well-known result of underinvestment by firms. We h...
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One of the reasons that companies avoid paying their taxes is that they choose to use debts for their funding. In other words, tax saving, an activity of companies to avoid taxpaying, can be used to finance corporate projects. Furthermore, since institutional owners are more inclined to supervise, they may shrink managerial behaviors to avoid taxpaying. In this study, institutional owners’ supe...
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writing an academic article requires the researchers to provide support for their works by learning how to cite the works of others. various studies regarding the analysis of citation in m.a theses have been done, while little work has been done on comparison of citations among elt scopus journal articles, and so the dearth of research in this area demands for further investigation into citatio...
Tax Avoidance and Institutional Ownership: Active vs. Passive Ownership
Income tax is one of the most important costs of companies and it is usually considered as a cost that should not be paid. One of the most noticeable and influential factors in tax avoidance is corporate ownership structure. With an emphasis on institutional ownership and its types in this paper, it is attempted to measure the effect of this ownership and its types on corporate tax avoidance. F...
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ژورنال
عنوان ژورنال: Theoretical Economics Letters
سال: 2020
ISSN: 2162-2078,2162-2086
DOI: 10.4236/tel.2020.105060