Determinants of the cost of equity of Malaysian firms

Foong, S.S. and 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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Abstract

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)
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 01:45
Last Modified: 18 Dec 2014 01:45
URI: http://eprints.um.edu.my/id/eprint/11307

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