Corporate Life Cycle and Cost of Equity Capital

2015 ◽  
Author(s):  
Mostafa Monzur Hasan ◽  
Mahmud Hossain ◽  
Adrian Cheung ◽  
Ahsan Habib
Keyword(s):  
Life Cycle ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Corporate Life Cycle

Corporate life cycle and cost of equity capital

2015 ◽  
Vol 11 (1) ◽  
pp. 46-60 ◽  
Author(s):  
Mostafa Monzur Hasan ◽  
Mahmud Hossain ◽  
Adrian (Wai-Kong) Cheung ◽  
Ahsan Habib
Keyword(s):  
Life Cycle ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Corporate Life Cycle

scholarly journals The Role of Firms’ Life Cycle Stages on Voluntary Disclosure and Cost of Equity Capital in Brazilian Public Companies

2020 ◽  
Vol 17 (6) ◽  
pp. 601-620
Author(s):  
Paulo Victor Novaes ◽  
Jose Elias Almeida
Keyword(s):  
Life Cycle ◽  
Voluntary Disclosure ◽  
Cost Of Capital ◽  
Equity Capital ◽  
Growth Stages ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Public Companies ◽  
Life Cycle Stages ◽  
The Cost

We examine the effects of firms’ life cycle stages on voluntary disclosure and the cost of equity capital. We also examine the relationship between the interaction of life cycle stages and voluntary disclosures measures on cost of equity capital. Our sample consists of non-financial Brazilian public companies, covered by analysts between 2008 and 2014, collected from I/B/E/S and Comdinheiro databases. We find that voluntary disclosure level is higher for firms in maturity and growth stages. We also find that firms in introduction and decline life cycle stages show higher implied cost of capital, however declining firms that increase voluntary disclosure reduce their cost of capital. Moreover, mature firms significantly reduce such inherent risk by reporting social and environmental voluntary information. Our results are useful for investors, practitioners, and regulators to the understanding of the incentives of voluntary disclosure practices.

scholarly journals Pengaruh Siklus Hidup Perusahaan Dalam Memoderasi Hubungan Manajemen Laba Dan Cost Of Equity Capital

2019 ◽  
Vol 1 (3) ◽  
pp. 1013-1032
Author(s):  
Indri Adelina Rizal ◽  
Nurzi Sebrina
Keyword(s):  
Life Cycle ◽  
Earnings Management ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Equity Capital ◽  
Manufacturing Companies ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
The Cost ◽  
The Relationship

This study aims to provide empirical evidence whether earnings management can influence the cost of equity capital and whether the company's life cycle can strengthen or weaken the relationship between earnings management and the cost of equity capital. Profit Management in this study was measured using a discretionary accrual proxy. The company's life cycle is measured using the company's cash flow pattern and the cost of equity capital measured using measurements from Ohlson's (1995) model modified by Utami (2005). This study is classified as causative research. The population in this study are manufacturing companies listed on the Indonesian Stock Exchange period of 2013 to 2017.By using purposive sampling method, there were 60 companies as the research’s sample. The type of data used is secondary data obtained from www.idx.co.id. The analysis used in this study is multiple linear regression analysis. The results of this study are that earnings management has no significant positive effect on the cost of equity capital and the company's life cycle is not able to strengthen or weaken the relationship of earnings management with the cost of equity capital.

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