This paper provides an empirical link between the expected cost of equity and firms’ Seasoned Equity Offerings activities, using a novel measure of forward-looking cost of equity. There is a negative impact of expected cost equity on SEO likelihood and amount of proceeds, exists on both market and firm level. Empirical evidence suggests that the negative SEO announcement effect and post-SEO lon...

Background: Accurate and timely disclosure of information is one of the most important tools for company managers to reduce the cost of capital. The purpose of this study is to investigate the role of managerschr('39') ownership in the relationship between the disclosure of corporate social and moral responsibility and the cost of equity in companies listed on the Tehran stock exchange. Method...

From a CAPM-type model the cost of equity is derived for a ...rm operating under various foreign tax systems. The ...rm’s shares are traded in a market which is una¤ected by these systems. The cost of capital depends on the foreign tax system, even for fully equity ...nanced projects. This is neglected in much of the literature. For a corporate income tax the main factor which reduces the cost ...

The pharmaceutical sector plays a fundamental role in supporting the economic development of a country. The performance of this sector is influenced by employees’ performance, which can be affected by the way employees perceive fairness at their workplace. Fairness perception can be affected by the equity sensitivity type and the personality traits of employees. The Lebanese context lacks studi...

The Sarbanes-Oxley Act (SOX) mandates management evaluation and independent audits of internal control effectiveness. The mandate is costly to firms but may yield benefits through lower information risk that translates into lower cost of equity. We use unaudited pre-SOX 404 disclosures and SOX 404 audit opinions to assess how changes in internal control quality affect firm risk and cost of equi...

This study provides new estimates of systematic risk and the cost of equity capital for the pharmaceutical, biotechnology, and medical device sectors using data for firms with publicly-traded stock on U.S. exchanges during 2001-2005 and 2006-2008. Two frameworks are employed for estimating firms’ risk and the cost of equity capital: (1) the capital asset pricing model, and (2) the Fama-French t...