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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: 2018-01-25  |  Accepted: 2018-05-10  |  Published: 2018-06-30

Title

Internal factors influencing the cost of equity capital


Abstract

In this paper we compile and evaluate the research available on internal factors influencing the cost of equity capital. The topic has been extensively studied for the past few decades; however, the information is spread and is not accumulated. We begin by reiterating the reasons why information asymmetry drives financial decisions. Next, we review recent literature that focuses on financial disclosure and accounting information, i.e. internal factors that are directly connected with information asymmetry. In the remainder of our review we discuss a recent debate on the impact of corporate governance and social factors. Aside from theoretical contribution, the comprehensive literature review of existing studies results in formulation of a strategy how to decrease to cost of equity capital by means of internal factors adjustments. We believe that highlighting the key points in the debate will be beneficial for both academicians and practitioners who will be able to form an independent view of the approaches how to take influence on the cost of equity capital.


Keywords

cost of equity, costs reduction, information asymmetry, disclosure policy, social responsibility


JEL classifications

G30 , M40 , D80


URI

http://jssidoi.org/jesi/article/186


DOI


HAL


Pages

827-845


Funding

This research was supported by the Institute of Economic Research Toruń, Poland. Project Title: Analysis of Relations among Capital Markets of European Union Countries. Project Registration No.: 2016/1.

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

Authors

Mokhova, Natalia
Brno University of Technology, Brno, Czech Republic https://www.vutbr.cz
Articles by this author in: CrossRef |  Google Scholar

Zinecker, Marek
Brno University of Technology, Brno, Czech Republic https://www.vutbr.cz
Articles by this author in: CrossRef |  Google Scholar

Meluzín, Tomáš
Brno University of Technology, Brno, Czech Republic https://www.vutbr.cz
Articles by this author in: CrossRef |  Google Scholar

Journal title

Entrepreneurship and Sustainability Issues

Volume

5


Number

4


Issue date

June 2018


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 4124  |  PDF downloads: 1611

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