Document Type
Conference Item
Publication Date
10-1-2010
Abstract
A number of Capital Asset Pricing Model (CAPM) and its variants are considered in this paper for exploring the determinants of the cost of equity of Malaysian firms. The semi-deviation approach is shown to yield the highest explanatory power on the returns of firms. The estimates of cost of equity from the semi-deviation approach were regressed on a list of potential determinants in a panel model analysis. The results show that firm size, book-to-market ratio, payout ratio and return to equity are negatively related to the cost of equity.
Keywords
CAPM, cost of equity, determinant, firm.
Recommended Citation
Foong, S.S. and Goh, K.L., "Determinants of the cost of equity of Malaysian firms" (2010). Research Publications (2006 to 2010). 4846.
https://knova.um.edu.my/research_publications_2006_2010/4846
Divisions
FacultyofEconomicsAdministration
Event Title
The 12th International Convention of the East Asian Economic Association
Event Location
Seoul, Korea
Event Dates
02-03 Oct 2010
Event Type
conference