The Implied Cost of Capital: Based on Chinese Listed Companies

Hui-guo Sun ()
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Hui-guo Sun: Tianjin University

Chapter Chapter 29 in The 19th International Conference on Industrial Engineering and Engineering Management, 2013, pp 271-278 from Springer

Abstract: Abstract This paper estimates the implied cost of capital inferred from a valuation model of Chinese A-share listed companies and also considers its validity. The implied cost of capital is “expected returns on capital investment” from the shareholders’ point of view, and it has the advantage of revealing more information and mitigating measurement error from the firm level. This paper assesses the quality of alternative ICC estimates and finds that GGM and CT reflect risk more appropriately.

Keywords: Multivariate analysis; Pooled regression; Risk factors; The implied cost of capital (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-642-38442-4_29

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DOI: 10.1007/978-3-642-38442-4_29

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