Open AccessHUBUNGAN ANTARA KARAKTERISTIK PERUSAHAAN DENGAN IMPLIED COST OF CAPITAL PADA PERUSAHAAN DI INDONESIA
Author(s) -
Bahtiar Usman
Publication year - 2020
Publication title -
media riset bisnis and manajemen
Language(s) - English
Resource type - Journals
eISSN - 2442-9716
pISSN - 1411-884X
DOI - 10.25105/mrbm.v3i2.8099
Subject(s) - cost of capital , weighted average cost of capital , capital (architecture) , economics , monetary economics , capital structure , debt , econometrics , business , microeconomics , finance , capital formation , financial capital , geography , profit (economics) , archaeology
This study, proposes an altenative technique for estimating the cost of capital. Specifically, it use discounted residualincome model. The examine firms characteristic that are systemati- cally related to this estimate of cost of capital, it show that a firm's cost of capital isa function of its long term Debt to Book Ratio (Ln D/B), Long Fim Size (Ln Size), Eaming Variability (Ln Ev) and Long Debt to Market Ratio (Ln D/M). These variables explain around 63% of the coss secional variaton in future implied costof capital. The findings suggest that they can be exploited to estimate future cost of capital in Indonesia.