Modeling the Factors Affecting Cost of Equity Capital: Evidences from Tehran Stock Exchange
Author(s):
Abstract:
Using structural equation modeling, we investigated the direct and indirect links between corporate governance, industry competition structure and the cost of equity capital. Our investigation was motivated by analytical models that specify both a direct and an indirect link that is mediated by financial reporting quality and financial performance. For 61 companies listed in Tehran Stock Exchange during 1384-1393, we used Partial Least Squair (PLS) method to analyze the models and used Smart PLS2 software to do that. We found statistically reliable evidence of both a direct path from corporate governance to the cost of equity, and an indirect path that is mediated by financial reporting quality and financial performance, with the weight of the evidence favoring the direct path as the more important. Also, we found statistically reliable evidence of an indirect path that is mediated by financial reporting quality and financial performance from industry competition structure to the cost of equity. The direct path between them was not statistically significant.
Keywords:
Language:
Persian
Published:
Asset Management and Financing, Volume:5 Issue: 2, 2017
Pages:
167 to 184
magiran.com/p1716858
دانلود و مطالعه متن این مقاله با یکی از روشهای زیر امکان پذیر است:
اشتراک شخصی
با عضویت و پرداخت آنلاین حق اشتراک یکساله به مبلغ 1,390,000ريال میتوانید 70 عنوان مطلب دانلود کنید!
اشتراک سازمانی
به کتابخانه دانشگاه یا محل کار خود پیشنهاد کنید تا اشتراک سازمانی این پایگاه را برای دسترسی نامحدود همه کاربران به متن مطالب تهیه نمایند!
توجه!
- حق عضویت دریافتی صرف حمایت از نشریات عضو و نگهداری، تکمیل و توسعه مگیران میشود.
- پرداخت حق اشتراک و دانلود مقالات اجازه بازنشر آن در سایر رسانههای چاپی و دیجیتال را به کاربر نمیدهد.
In order to view content subscription is required
Personal subscription
Subscribe magiran.com for 70 € euros via PayPal and download 70 articles during a year.
Organization subscription
Please contact us to subscribe your university or library for unlimited access!