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Time‐varying Cost of Equity Capital in Southeast Asian Countries
Author(s) -
Ameer Rashid
Publication year - 2007
Publication title -
asian economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.345
H-Index - 28
eISSN - 1467-8381
pISSN - 1351-3958
DOI - 10.1111/j.1467-8381.2007.00255.x
Subject(s) - equity capital markets , cost of capital , economics , cost of equity , equity (law) , equity risk , monetary economics , financial economics , business , finance , private equity , microeconomics , profit (economics) , political science , law
This paper investigates variation in the cost of equity capital for the Southeast Asian countries using firm‐level data over the period of 1990–2004. It is found that decreases in the firm‐level cost of equity capital have been associated with stock market liberalization and securities market development. The results of the present study suggest that earlier empirical evidence regarding the decrease in the cost of equity capital using country‐level data cannot be generalized to different types of firms. There has been significant time variation in the cost of equity capital within countries and across firms.