Original paper

EXTERNAL GOVERNANCE AND THE COST OF EQUITY FINANCING

Volume: 42, Issue: 4, Pages: 817 - 865
Published: Nov 25, 2019
Abstract
We examine whether and how competitive pressure in the product market influences the cost of equity capital. Using a large panel of U.S. public firms, we find that intensification of product market competition results in lower equity financing costs. Our results are statistically significant and economically sizable. In line with the view of the disciplinary role of product market competition, we show that corporate governance, payout policy,...
Paper Details
Title
EXTERNAL GOVERNANCE AND THE COST OF EQUITY FINANCING
Published Date
Nov 25, 2019
Volume
42
Issue
4
Pages
817 - 865
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