an equity index. A cross-country panel analysis of the impact of macro-structural factors on inclusive growth and its two …

capital on banks' cost of equity. Consistent with the theoretical prediction that more equity in the capital mix leads to a … fall in firms' costs of equity, we find that better capitalized banks enjoy lower equity costs. Our baseline estimations … indicate that a 1 percentage point increase in a bank's equity-to-assets ratio lowers its cost of equity by about 18 basis …

ratio; the Tier I and Tier II ratios; and the tangible equity ratio. We find several results: (i) before the crisis … quality forms of capital, such as Tier 1 capital and tangible common equity, were more relevant …