We investigate the relation between firms' weighted average cost of capital and internal financial resources, using mandatory pension contributions as a proxy for internal financial resources. Rauh (2006) documents a negative association between mandatory pension contributions and capital...

In this paper, we examine the effects of corporate governance mechanisms on the financing policies of New Zealand firms for the period 2004-2008. Using a unique self-constructed corporate governance index and employing the Fama and French (1999) financing model of firms, we find that firms with...

In this paper, we examine the effects of corporate governance mechanisms on the financing policies of New Zealand firms for the period 2004-2008. Using a unique self-constructed corporate governance index and employing the Fama and French (1999) financing model of firms, we find that firms with...

Traditionally, the cost of debt is seen as solely dependent on firm or debt characteristics. However, a firm's cost of debt might also be impacted by the informational environment, thereby offering a link between security transparency, asset pricing, and corporate finance. This paper measures...

This study examines the build-up method in estimating the cost of capital for valuing small, closely held businesses. Cost of capital is the rate of return expected from an investment. The build-up method adds the risk-free rate, the equity risk premium, the firm size premium and...

This paper investigates the factors associated with firms' financial reporting choices and their economic impact on the cost of equity capital for the Malaysian listed firms over the period of 2000-2007. We find that there is a negative association between financial reporting quality choice and...

We propose a method to consistently estimate the cost of debt in a continuous-time framework with an infinite time horizon. The approach builds on the EBIT-based model of Goldstein et al. (2001). The model is capable of splitting the observed yield spread of a corporate bond into the risk...

We investigate how borrowers' corporate governance influences bank loan contracting terms in emerging markets and how this relation varies across countries with different country-level governance. We find that borrowers with stronger corporate governance obtain favorable contracting terms with...

This article applies a unique accruals measure to empirically test whether accruals quality affects the cost of capital for property-liability insurers. We utilize insurer loss reserve errors to accurately measure the quality of accruals. This measure, as well as conventional accruals measures,...

This study examines liquidity and cost of capital effects around voluntary and mandatory IAS/IFRS adoptions. In contrast to prior work, we focus on the firm-level heterogeneity in the economic consequences, recognizing that firms have considerable discretion in how they implement the new...