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Source: Journal Citation ReportsTM from ClarivateTM 2022

Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2022) 1.7
Journal Citation IndicatorTM (2022) 0.42
Received: 2022-05-17  |  Accepted: 2022-09-02  |  Published: 2022-09-30

Title

Actual paid cost of equity in construction


Abstract

The value of the cost of equity capital is very important, both for all businesses and for investors, as it expresses the return on invested funds and is one of the most important factors in decision-making. The aim of the article is to determine the value of the actual paid costs of equity capital in the construction industry in 2016-2019. The used data from the Cribis / Albertina databases were processed using changes in the undistributed economic result of previous years and the economic result of the current accounting period. The results found show that the average cost of equity in the years 2016 - 2019 ranges from 29.35 % - 37.81 % and the median values range from 16.43 % - 24.24 %. The benefit of the presented results is primarily seen in their possibility of subsequent prediction of future costs of equity capital. A limitation of the research may be in the data used, for which it is appropriate when it is the most recent.


Keywords

economics result, costs on own capital, share on profit, average, median


JEL classifications

E22 , G11 , M41


URI

http://jssidoi.org/jesi/article/1003


DOI


Pages

408-419


Funding

This research was funded by project no. IVSUZO003 „Paid cost of equity capital“, Institute of Technology and Business, School of Expertness and Valuation, Czech Republic.

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Krulický, Tomáš
Institute of Technology and Business in České Budějovice, České Budějovice, Czech Republic https://www.vstecb.cz
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Machová, Veronika
Institute of Technology and Business in České Budějovice, České Budějovice, Czech Republic https://www.vstecb.cz
Articles by this author in: CrossRef |  Google Scholar

Dvorák, Ondřej
Institute of Technology and Business in České Budějovice, České Budějovice, Czech Republic https://www.vstecb.cz
Articles by this author in: CrossRef |  Google Scholar

Journal title

Entrepreneurship and Sustainability Issues

Volume

10


Number

1


Issue date

September 2022


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 1275  |  PDF downloads: 539

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