Time-Varying Cost of Equity Capital in Southeast Asian Countries

Asian Economic Journal, Vol. 21, No. 2, pp. 207-238, 2007

32 Pages Posted: 21 Feb 2012

See all articles by Rashid Ameer

Rashid Ameer

IPU New Zealand Tertairy Institute

Date Written: 2007

Abstract

This paper investigates variation in the cost of equity capital for the Southeast Asian countries using firm-level data over the period of 1990-2004. It is found that decreases in the firm-level cost of equity capitall have been associated with stock market liberalization and securities market development. The results of the present study suggest that earlier empirical evidence regarding the decrease in the cost of equity capital using country-level data cannot be generalized to different types of firms. There has been significant time variation in the cost of equity capital within countries and across firms.

Keywords: cost of equity capital, emerging markets, institutions, securities law, stock market liberalization

JEL Classification: D2, K12, G15, G31

Suggested Citation

Ameer, Rashid, Time-Varying Cost of Equity Capital in Southeast Asian Countries (2007). Asian Economic Journal, Vol. 21, No. 2, pp. 207-238, 2007, Available at SSRN: https://ssrn.com/abstract=2008508

Rashid Ameer (Contact Author)

IPU New Zealand Tertairy Institute ( email )

57 Aokautere Drive
Fitzherbert
Palmerston north
New Zealand

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