In this study, we examine international differences in firms' cost of equity capital around the world. Specifically, we investigate whether the effectiveness of labor protection regulations is systematically related to firms' cost of equity capital and how the presence of controlling...

This study investigates the governance role of a country’s legal and extra-legal institutions in explaining the variations in firms’ cost of equity capital induced by concentrated ownership structures from 21 countries. Using four implied cost of equity proxies, the results show that the...