Does corporate performance predict the cost of equity capital?

Muhammad Rehman, Qamar Zaman
2011 American Journal of Social and Management Sciences  
The main purpose of this study is to investigate the relation between corporate performance and cost of equity capital. The work includes the anecdotal evidences to support the relation between and corporate performance is taken as an independent variable and cost of equity capital is taken as dependent variable while return on asset is taken as proxy to measure the corporate performance. Panel regression is applied while to check the effectiveness of random and fixed effect, Hausman test is
more » ... Hausman test is exercised. The study finds insignificant relation between corporate performance and cost of equity capital
doi:10.5251/ajsms.2011.2.1.26.33 fatcat:tnm7i3u5yfbtvecpvitoszaevu