Corporate governance and cost of equity: do financial development and legal origin matter?

Tourani-Rad, Alireza and Gupta, Kartick and Krishnamurti, Chandrasekar (2010) Corporate governance and cost of equity: do financial development and legal origin matter? In: IGIDR 2010: 1st Emerging Markets Finance Conference, 15-16 Dec 2010, Bombay, India.

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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: Title of Accepted Version differs from the Conference paper title
Faculty / Department / School: Historic - Faculty of Business - School of Accounting, Economics and Finance
Date Deposited: 19 Mar 2018 02:38
Last Modified: 19 Mar 2018 02:38
Uncontrolled Keywords: corporate governance; financial development; legal origin; implied cost of equity capital
Fields of Research : 15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150303 Corporate Governance and Stakeholder Engagement
15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150202 Financial Econometrics
18 Law and Legal Studies > 1801 Law > 180112 Equity and Trusts Law
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9102 Microeconomics > 910204 Industry Costs and Structure
URI: http://eprints.usq.edu.au/id/eprint/21343

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