LOG IN⠴ݱâ

  • ȸ¿ø´ÔÀÇ ¾ÆÀ̵ð¿Í Æнº¿öµå¸¦ ÀÔ·ÂÇØ ÁÖ¼¼¿ä.
  • ȸ¿øÀÌ ¾Æ´Ï½Ã¸é ¾Æ·¡ [ȸ¿ø°¡ÀÔ]À» ´­·¯ ȸ¿ø°¡ÀÔÀ» ÇØÁֽñ⠹ٶø´Ï´Ù.

¾ÆÀ̵ð ÀúÀå

   

¾ÆÀ̵ð Áߺ¹°Ë»ç⠴ݱâ

HONGGIDONG ˼
»ç¿ë °¡´ÉÇÑ È¸¿ø ¾ÆÀ̵ð ÀÔ´Ï´Ù.

E-mail Áߺ¹È®ÀÎ⠴ݱâ

honggildong@naver.com ˼
»ç¿ë °¡´ÉÇÑ E-mail ÁÖ¼Ò ÀÔ´Ï´Ù.

¿ìÆí¹øÈ£ °Ë»ö⠴ݱâ

°Ë»ö

SEARCH⠴ݱâ

ºñ¹Ð¹øÈ£ ã±â

¾ÆÀ̵ð

¼º¸í

E-mail

Archive

Understanding the Eects of Alternative Cost-of-Equity Proxies on Corporate Investment and Financing

  • Soku Byoun Hankamer School of Business, Baylor University
  • Kai Wuy School of Finance, Central University of Finance and Economics, Beijing, China
Previous research shows that the implied cost of capital (factor model-based estimates for the cost of equity) have a negative (positive) eect on investment. Our paper documents that these alternative cost-of-equity proxies also have opposite eects on external nancing activities. We show that the ICC has negative eects on investment and external nancing by capturing the rm-specic discount rate news, whereas the factor model-based proxies has positive eects on these decisions by capturing the cash ow news. Furthermore, the negative eects of the ICC are more pronounced for rms with high private information and equity dependence, whereas the positive eects of the factor model-based estimates are more pronounced for rms with low private information and equity dependence. Thus, the opposite eects of the cost-of-equity proxies can be explained by their distinctive information contents.

  • Soku Byoun
  • Kai Wuy
Previous research shows that the implied cost of capital (factor model-based estimates for the cost of equity) have a negative (positive) eect on investment. Our paper documents that these alternative cost-of-equity proxies also have opposite eects on external nancing activities. We show that the ICC has negative eects on investment and external nancing by capturing the rm-specic discount rate news, whereas the factor model-based proxies has positive eects on these decisions by capturing the cash ow news. Furthermore, the negative eects of the ICC are more pronounced for rms with high private information and equity dependence, whereas the positive eects of the factor model-based estimates are more pronounced for rms with low private information and equity dependence. Thus, the opposite eects of the cost-of-equity proxies can be explained by their distinctive information contents.
Implied Cost of Capital,Cash Flow News,Discount Rate News