Determinants of the cost of equity of Malaysian firms

Foong, S.S.; Goh, K.L. (2010) Determinants of the cost of equity of Malaysian firms. In: The 12th International Convention of the East Asian Economic Association, 02-03 Oct 2010, Seoul, Korea.

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    A number of Capital Asset Pricing Model (CAPM) and its variants are considered in this paper for exploring the determinants of the cost of equity of Malaysian firms. The semi-deviation approach is shown to yield the highest explanatory power on the returns of firms. The estimates of cost of equity from the semi-deviation approach were regressed on a list of potential determinants in a panel model analysis. The results show that firm size, book-to-market ratio, payout ratio and return to equity are negatively related to the cost of equity.

    Item Type: Conference or Workshop Item (Paper)
    1. Foong, S.S.(University of Malaya)
    2. Goh, K.L.(University of Malaya)
    Uncontrolled Keywords: CAPM, cost of equity, determinant, firm.
    Subjects: H Social Sciences > HB Economic Theory
    Divisions: Faculty of Economics & Administration
    Depositing User: Mr. Mohd Samsul Ismail
    Date Deposited: 18 Dec 2014 09:45
    Last Modified: 18 Dec 2014 09:45

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