The impact of COVID-19 on firms' cost of equity capital: Early evidence from US public firms

被引：16
|
作者：
Ke, Yun [1 ]
机构：
[1] Univ Texas El Paso, Coll Business Adm, Dept Accounting & Informat Syst, 500 West Univ Ave, El Paso, TX 79968 USA
来源：
FINANCE RESEARCH LETTERS | 2022年 / 46卷
关键词：
COVID-19; Pandemic; Cost of equity capital; exposure; Health crisis;
D O I：
10.1016/j.frl.2021.102242
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This paper examines how the COVID-19 pandemic affects firms' cost of equity capital. I use analyst earnings forecasts and stock prices data to estimate firms' cost of equity capital. With 18,740 firm-month observations from September 2019 to August 2020, I show that firms experienced an increase in the cost of equity capital during the pandemic. On average, the cost of equity capital increased about 172 basis-points. The effect is also more pronounced in firms with greater COVID-19 exposure. Overall, I document a significantly adverse impact of COVID-19 on firms' cost of capital.
引用
收藏
页数：8
相关论文
共 50 条
  • [31] The impact of SEC investigations and accounting and auditing enforcement releases on firms’ cost of equity capital
    Nicholls C.
    [J]. Review of Quantitative Finance and Accounting, 2016, 47 (1) : 57 - 82
  • [32] EFFECT OF LEVERAGE ON COST OF EQUITY CAPITAL OF ELECTRIC UTILITY FIRMS
    ROBICHEK, AA
    HIGGINS, RC
    KINSMAN, M
    [J]. JOURNAL OF FINANCE, 1973, 28 (02): : 353 - 367
  • [33] EXCHANGE-LISTING EFFECTS ON A FIRMS COST OF EQUITY CAPITAL
    DHALIWAL, DS
    [J]. JOURNAL OF BUSINESS RESEARCH, 1983, 11 (02) : 139 - 151
  • [34] FIRMS OPTIMAL DEBT-EQUITY COMBINATION AND COST OF CAPITAL
    BAUMOL, WJ
    MALKIEL, BG
    [J]. QUARTERLY JOURNAL OF ECONOMICS, 1967, 81 (04): : 547 - 578
  • [35] Impact of the COVID-19 outbreak on the US equity sectors: Evidence from quantile return spillovers
    Shahzad, Syed Jawad Hussain
    Bouri, Elie
    Kristoufek, Ladislav
    Saeed, Tareq
    [J]. FINANCIAL INNOVATION, 2021, 7 (01)
  • [36] Impact of the COVID-19 outbreak on the US equity sectors: Evidence from quantile return spillovers
    Syed Jawad Hussain Shahzad
    Elie Bouri
    Ladislav Kristoufek
    Tareq Saeed
    [J]. Financial Innovation, 7
  • [37] The impact of leverage on investment and firm value during the COVID-19: Evidence from Chinese listed firms
    Xue, Shuyu
    Luo, Zijing
    Liu, Yuchen
    [J]. INTERNATIONAL JOURNAL OF FINANCIAL ENGINEERING, 2023,
  • [38] Impact of COVID-19 on financial performance of logistics firms: evidence from G-20 countries
    Atayah, Osama Fayez
    Dhiaf, Mohamed Mahjoub
    Najaf, Khakan
    Frederico, Guilherme Francisco
    [J]. JOURNAL OF GLOBAL OPERATIONS AND STRATEGIC SOURCING, 2022, 15 (02) : 172 - 196
  • [39] The Political Determinants of the Cost of Equity: Evidence from Newly Privatized Firms
    Ben-Nasr, Hamdi
    Boubakri, Narjess
    Cosset, Jean-Claude
    [J]. JOURNAL OF ACCOUNTING RESEARCH, 2012, 50 (03) : 605 - 646
  • [40] The impact of COVID-19 on stock market liquidity: Fresh evidence on listed Chinese firms
    Apergis, Nicholas
    Lau, Chi Keung
    Xu, Bing
    [J]. INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS, 2023, 90
12345