Publication detail

Internal Factors Influencing the Cost of Equity Capital

MOKHOVA, N. ZINECKER, M. MELUZÍN, T.

Original Title

Internal Factors Influencing the Cost of Equity Capital

Type

journal article in Web of Science

Language

English

Original Abstract

In this paper we compile and evaluate the research available on internal factors influencing the cost of equity capital. The topic has been extensively studied for the past few decades; however, the information is spread and is not accumulated. We begin by reiterating the reasons why information asymmetry drives financial decisions. Next, we review recent literature that focuses on financial disclosure and accounting information, i.e. internal factors that are directly connected with information asymmetry. In the remainder of our review we discuss a recent debate on the impact of corporate governance and social factors. Aside from theoretical contribution, the comprehensive literature review of existing studies results in formulation of a strategy how to decrease to cost of equity capital by means of internal factors adjustments. We believe that highlighting the key points in the debate will be beneficial for both academicians and practitioners who will be able to form an independent view of the approaches how to take influence on the cost of equity capital.

Keywords

cost of equity; costs reduction; corporate governance; information asymmetry; disclosure policy; social responsibility

Authors

MOKHOVA, N.; ZINECKER, M.; MELUZÍN, T.

Released

27. 6. 2018

Publisher

Enterpreneurship & Sustainability Center

Location

Vilnius, Lithuania

ISBN

2345-0282

Periodical

ENTREPRENEURSHIP AND SUSTAINABILITY ISSUES

Year of study

5

Number

4

State

Republic of Lithuania

Pages from

827

Pages to

845

Pages count

19

BibTex

@article{BUT149051,
  author="Natalia {Mokhova} and Marek {Zinecker} and Tomáš {Meluzín}",
  title="Internal Factors Influencing the Cost of Equity Capital",
  journal="ENTREPRENEURSHIP AND SUSTAINABILITY ISSUES",
  year="2018",
  volume="5",
  number="4",
  pages="827--845",
  doi="10.9770/jesi.2018.5.4(9)",
  issn="2345-0282"
}