The international effect of managerial social capital on the cost of equity

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• 作者：Stephen P. Ferris^a ; ^{ferriss@missouri.edu} ; David Javakhadze^b ; ^{djavakhadze@fau.edu} ; Tijana Rajkovic^c ; ^{tijana.rajkovic@sjsu.edu}
• 关键词：G31 ; F30 ; Z13
• 刊名：Journal of Banking & Finance
• 出版年：2017
• 出版时间：January 2017
• 年：2017
• 卷：74
• 期：Complete
• 页码：69-84
• 全文大小：681 K
• 卷排序：74

文摘

Using a large panel of companies from 52 countries over the period 1999–2012, we document that social capital inversely affects the cost of equity. Our evidence suggests that the association between social capital and the cost of equity capital is stronger in underdeveloped financial markets and those characterized by weak legal protection. The marginal effect of social capital is also stronger for constrained firms with profitable investment opportunities. Our results are robust to alternative model specifications and tests for endogeneity.