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We investigate the cost of capital in a model with an agency conflict between inside managers and outside shareholders. Inside ownership reflects the classic tradeoff between incentives and risk diversification, and the severity of agency costs depends on a parameter representing investor...
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We test the performance of two ESG score-driven quantitative signals on a large, multi-national crosssection of European stock returns. In particular, we ask whether in the cross-section, the cost of equity capital is more strongly affected by the (upward) “slope” (identified as momentum...
Persistent link: https://www.econbiz.de/10014350000
We investigate the cost of capital in a model with an agency conflict between inside managers and outside shareholders. Inside ownership reflects the classic tradeoff between incentives and risk diversification, and the severity of agency costs depends on a parameter representing investor...
Persistent link: https://www.econbiz.de/10011506547
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of stock market liberalization on corporate investment and address some of the data and methodological concerns raised in … previous studies. Our difference-in-differences analysis shows that the reform boosts the investment of investable firms … relative to non-investable firms. It also makes the investable firms' investment more responsive to growth opportunities …
Persistent link: https://www.econbiz.de/10012845804