The DOI matches its Crossref record; 82 of the 82 references it cites were found in a registry or an index.
Agency Costs of Free Cash Flow and the Effect of Shareholder Rights on the Implied Cost of Equity Capital
Open accessAbstract
In this paper, we examine the effect of shareholder rights on reducing the cost of equity and the impact of agency problems from free cash flow (FCF) on this effect. We find that firms with strong shareholder rights have a significantly lower implied cost of equity after controlling for risk factors, price momentum, analysts’ forecast biases, and industry and year effects than do firms with weak shareholder rights. Further analysis shows that the effect of shareholder rights on reducing the cost of equity is significantly stronger for firms with more severe agency problems from FCFs.
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Cites
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Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers
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Cited by
Does corporate social responsibility affect the cost of capital?
El Ghoul, S., Guedhami, O., Kwok, C. C. Y., & Mishra, D. R. (2011) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2011.02.007 · Cited by 3,465
Legal protection of investors, corporate governance, and the cost of equity capital
Chen, K. C. W., Chen, Z., & Wei, K. C. J. (2009) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2009.01.001 · Cited by 669
Self-citationCorporate environmental responsibility and the cost of capital: International evidence
El Ghoul, S., Guedhami, O., Kim, H., & Park, K. (2018) · Journal of Business Ethics · doi:10.1007/s10551-015-3005-6 · Cited by 544
Policy uncertainty, investment, and the cost of capital
Drobetz, W., El Ghoul, S., Guedhami, O., & Janzen, M. (2018) · Journal of Financial Stability · doi:10.1016/j.jfs.2018.08.005 · Cited by 341
Women in top management and agency costs
Jurkus, A. F., Park, J. C., & Woodard, L. S. (2011) · Journal of Business Research · doi:10.1016/j.jbusres.2009.12.010 · Cited by 331
Metadata
- Authors
- Chen, K. C. W., Chen, Z., & Wei, K. C. J.
- Venue
- Journal of Financial and Quantitative Analysis
- Publisher
- Cambridge University Press (CUP)
- Published
- 2010-09-17
- Volume
- 46
- Issue
- 1
- Pages
- 171-207
- ISSN
- 0022-1090 (ISSN-L)
- 1756-6916
- OpenAlex
- W2144275088
- Cited by
- 305
- References
- 82
- FWCI
- 43.89
- Type
- journal article
- Language
- en
- Open access
- green
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- Chen, K. C. W., Chen, Z., & Wei, K. C. J. (2011). Agency Costs of Free Cash Flow and the Effect of Shareholder Rights on the Implied Cost of Equity Capital. Journal of Financial and Quantitative Analysis. https://doi.org/10.1017/s0022109010000591
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
