Testing methods to compute the cost of capital for unlisted firms: evidence from listed companies

Proyecto: Investigación

Detalles del proyecto

Descripción

This study examines the different methods of estimating the systematic risk profile of unlisted firms (UFs) in order to identify more efficient ways of calculating their cost of equity capital. We assess the empirical performance of the most common methods of estimating the risk profile of UFs by using two different approaches: First, we measure the relationship between each method and the market model. Second, we use formal asset pricing model tests to evaluate the model¿s capacity to explain cross-sectional variation of stock. The empirical analisys is conducted in US public market.
EstadoFinalizado
Fecha de inicio/Fecha fin13/01/1412/07/15

Financiación de proyectos

  • Interna
  • PONTIFICIA UNIVERSIDAD JAVERIANA