Market structure and the cost of capital

Mohamed El Hedi Arouri, Christophe Rault, Anamaria Sova, Robert Sova () and Frédéric Teulon

Economic Modelling, 2013, vol. 31, issue C, 664-671

Abstract: We contribute to the finance literature in two main ways. First, we present a theoretical capital asset pricing model (CAPM) to price assets in different market structures. Second, we use our model to analyze whether when markets are partially segmented using the local or the global CAPM yields significant errors in the estimation of the cost of capital for a sample of firms from developed and emerging countries.

Keywords: Finance; International asset pricing; Firm's cost of capital; Segmentation (search for similar items in EconPapers)
JEL-codes: C32 F36 G15 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Working Paper: Market Structure and the Cost of Capital (2013)
Working Paper: Market Structure and the Cost of Capital (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:31:y:2013:i:c:p:664-671

DOI: 10.1016/j.econmod.2013.01.004

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