Actual paid cost of equity in construction

Tomáš Krulický (), Veronika Machová () and Ondřej Dvorák ()
Additional contact information
Tomáš Krulický: Institute of Technology and Business in České Budějovice, Czech Republic
Veronika Machová: Institute of Technology and Business in České Budějovice, Czech Republic
Ondřej Dvorák: Institute of Technology and Business in České Budějovice, Czech Republic

Entrepreneurship and Sustainability Issues, 2022, vol. 10, issue 1, 408-419

Abstract: The value of the cost of equity capital is very important, both for all businesses and for investors, as it expresses the return on invested funds and is one of the most important factors in decision-making. The aim of the article is to determine the value of the actual paid costs of equity capital in the construction industry in 2016-2019. The used data from the Cribis / Albertina databases were processed using changes in the undistributed economic result of previous years and the economic result of the current accounting period. The results found show that the average cost of equity in the years 2016 - 2019 ranges from 29.35 % - 37.81 % and the median values range from 16.43 % - 24.24 %. The benefit of the presented results is primarily seen in their possibility of subsequent prediction of future costs of equity capital. A limitation of the research may be in the data used, for which it is appropriate when it is the most recent.

Keywords: economics result; costs on own capital; share on profit; average; median (search for similar items in EconPapers)
JEL-codes: E22 G11 M41 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://jssidoi.org/jesi/uploads/articles/37/Kruli ... _in_construction.pdf (application/pdf)
https://jssidoi.org/jesi/article/1003 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouesi:v:10:y:2022:i:1:p:408-419

DOI: 10.9770/jesi.2022.10.1(22)

Access Statistics for this article

Entrepreneurship and Sustainability Issues is currently edited by Manuela Tvaronaviciene

More articles in Entrepreneurship and Sustainability Issues from VsI Entrepreneurship and Sustainability Center
Bibliographic data for series maintained by Manuela Tvaronaviciene ().