Impact of corporate governance mechanisms on the cost of equity capital in emerging markets

2020 ◽  
Author(s):  
Saad Faysal ◽  
Mahdi Salehi ◽  
Mahdi Moradi
Keyword(s):  
Corporate Governance ◽  
Emerging Markets ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
The Cost

scholarly journals Pengaruh Struktur Kepemilikan Dalam Mekanisme Corporate Governance Terhadap Cost Of Equity Capital

2009 ◽  
Vol 1 (1) ◽  
pp. 89
Author(s):  
Tarjo Tarjo
Keyword(s):  
Corporate Governance ◽  
Institutional Ownership ◽  
Equity Capital ◽  
Managerial Ownership ◽  
Strong Impact ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
The Cost

AbstractCorporate governance mechanisms believed to have strong impact to the companies’ performance. Corporate governance mechanisms examined in this study are managerial ownership and institutional ownership structure. The purposes of this study are to know the variables effect of managerial ownership and institutional ownership on cost of equity capital. The samples of the study are firms listed in Jakarta Stock Exchange in 2005. The F-test on the all variables at the level confidence 1% indicates the effect of all variables on cost of equity capital is significant. The result of this study showed that managerial ownership and institutional ownership have positive significant impact (at the level of confidence 1% and 5%) on the cost of equity capital. However this result showed that corporate governance mechanisms fail to decrease the cost of equity capital.

Pengaruh Kualitas Corporate Governance Terhadap Cost Of Equity Perusahaan Manufaktur Di Indonesia

2018 ◽  
Vol 13 (1) ◽  
Author(s):  
Fiki Kartika
Keyword(s):  
Corporate Governance ◽  
Risk Premium ◽  
Manufacturing Industry ◽  
Equity Capital ◽  
Manufacturing Companies ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Ex Ante ◽  
The Cost ◽  
The Impact

This research aims to determine the impact of Good Corporate Governance (GCG) on the cost of equity for manufacturing companies in Indonesia. The sampling technique uses purposive sampling, namely companies listed on the Indonesia Stock Exchange. The analysis was carried out in the Manufacturing industry sector in 2013 - 2015. The GCG index was measured using five dimensions adopted from Black et al. (2003) and Cost of Equity is measured by the ex ante cost of equity capital using the Price Earning Growth (PEG) proxy. The reason for using ex ante cost of equity capital is ex-ante is more describing the role of investors in seeing the risk of a company. The results of this study indicate that GCG negatively affects on the cost of equity. GCG limits managerial opportunism and reduces agency conflicts between owners and agents. Therefore, shareholders are willing to accept a lower risk premium, effectively reducing equity costs.

scholarly journals Corporate governance in emerging markets and its impact on finance performance

2014 ◽  
Vol 12 (1) ◽  
pp. 625-632 ◽  
Author(s):  
Edmundo Lizarzaburu Bolaños ◽  
Luis Berggrun ◽  
Kurt Johnny Burneo Farfan
Keyword(s):  
Corporate Governance ◽  
Emerging Markets ◽  
Capital Structure ◽  
Board Of Directors ◽  
Insider Trading ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Multiple Issues ◽  
The Impact

This paper reviews the theoretical framework of Corporate Governance and multiple issues in which it is evaluated such as agency costs, asymmetric information, insider trading, manipulation of earnings, Board of Directors, etc. Finally, it is reviewed the impact of Corporate Governance over cost of equity, capital structure and financial performance

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