Relationship of Cost of Capital,Cost of Equity Capital, Value of Firm & otherFinancial Variables : Panel Data & SimultaneousEquation Analysis of Indian Companies
Material type:
TextDescription: 21-58 pSubject(s):
In:
AGRAWAL, J.D. Finance IndiaSummary: Cost of capital plays an important role in the economy. There is tremendous change in the financial environment after 1990, due to globalization and liberalization processes taking place in India. This paper is an attempt to empirically examine whether cost of capital is the function of capital structure or remains invariant to the same and also to investigate the relationship between cost of capital, cost of equity capital, value of firm and other financial variables based on Secondary sources of top 500 companies of India on the basis of market capitalization, during the period 2008-2010. Study indicates that the relationship of cost of capital, cost of equity capital, value of firm and other financial variables in some industries supports the Traditional view and in other industries supports the Modigliani and Miller view. While taking decisions for financial variables in various companies one has to consider number of factors, which lead to increase strategic efficiency and effectiveness of companies.
| Item type | Current library | Call number | Vol info | Status | Notes | Date due | Barcode | Item holds | |
|---|---|---|---|---|---|---|---|---|---|
Journal Article
|
Main Library | Vol 33, Issue 1/ 55510522JA2 (Browse shelf(Opens below)) | Available | 55510522JA2 | |||||
Journals and Periodicals
|
Main Library On Display | JP/FIN/Vol 33, Issue 1/55510522 (Browse shelf(Opens below)) | Vol 33, Issue 1 (05/08/2022) | Not for loan | March, 2019 | 55510522 |
Browsing Main Library shelves Close shelf browser (Hides shelf browser)
Cost of capital plays an important role in the economy. There is tremendous change in the financial environment after 1990, due to globalization and liberalization processes taking place in India. This paper is an attempt to empirically examine whether cost of capital is the function of capital structure or remains invariant to the same and also to investigate the relationship between cost of capital, cost of equity capital, value of firm and other financial variables based on Secondary sources of top 500 companies of India on the basis of market capitalization, during the period 2008-2010. Study indicates that the relationship of cost of capital, cost of equity capital, value of firm and other financial variables in some industries supports the Traditional view and in other industries supports the Modigliani and Miller view. While taking decisions for financial variables in various companies one has to consider number of factors, which lead to increase strategic efficiency and effectiveness of companies.
There are no comments on this title.