Financial development, corporate governance and cost of equity capital

Gupta, Kartick and Krishnamurti, Chandrasekhar and Tourani-Rad, Alireza (2011) Financial development, corporate governance and cost of equity capital. In: 3rd Annual Asian Conference of the Financial Management Association International (FMA 2011) , 6-8 Apr 2011, Queenstown, New Zealand.

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Abstract

This paper explicitly examines the interactive impact of country level legal and financial development, and firm level governance attributes on the cost of equity capital. Using a comprehensive sample of 7380 firm years drawn from 22 developed countries, we show that firm level governance attributes affect the cost of equity capital only in the Common Law countries with high level of financial development. Our study is the first to highlight the complementary effects of legal origin, financial development and firm level governance attributes in influencing the cost of equity capital.

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Item Type:	Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed:	Yes
Item Status:	Live Archive
Additional Information:	Same paper as 19811. Program is at http://www.latrobe.edu.au/__data/assets/file/0003/67305/2010-gsm-fcgc-program.pdf
Faculty/School / Institute/Centre:	Historic - Faculty of Business and Law - School of Accounting, Economics and Finance (1 Jan 2011 - 30 Jun 2013)
Faculty/School / Institute/Centre:	Historic - Faculty of Business and Law - School of Accounting, Economics and Finance (1 Jan 2011 - 30 Jun 2013)
Date Deposited:	12 Jun 2012 05:59
Last Modified:	01 Mar 2017 23:36
Uncontrolled Keywords:	corporate governance; financial development; legal origin; implied cost of equity capital
Fields of Research (2008):	15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150201 Finance 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management 15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150303 Corporate Governance and Stakeholder Engagement
Fields of Research (2020):	35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3502 Banking, finance and investment > 350202 Finance 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3502 Banking, finance and investment > 350208 Investment and risk management 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3507 Strategy, management and organisational behaviour > 350799 Strategy, management and organisational behaviour not elsewhere classified
Socio-Economic Objectives (2008):	B Economic Development > 90 Commercial Services and Tourism > 9001 Financial Services > 900101 Finance Services
URI:	http://eprints.usq.edu.au/id/eprint/19814

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