The relationship between corporate governance and the cost of equity capital. Evidence from the Italian stock exchange

Mazzotta, Romilda; Veltri, Stefania

doi:10.1007/s10997-012-9230-9

Cited by 45 publications

(88 citation statements)

References 93 publications

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“…The relationship between IR quality and the cost of equity capital was tested through a regression model following the previous studies in the field. In particular, we followed researchers who studied the relationship between disclosure and cost of equity capital (Botosan, 1997;Botosan & Plumlee, 2002;Richardson & Welker, 2001), corporate governance and cost of equity (Mazzotta & Veltri, 2014;Reverte, 2009), and CSR and cost of equity (Reverte, 2012). A crosssection analysis was adopted, and not a panel analysis because the main independent variable has low variation over time.…”

Section: Model Specificationmentioning

confidence: 99%

“…At the same time, the cost of equity is negatively related with market-tobook value (Fama & French, 1995) and firm size (Berk, 1995). A possible explanation of the negative relationship between the cost of equity and market-to-book value, according to Mazzotta and Veltri (2014), is that investors tend to overvalue growth stocks: the higher the market-to-book ratio, the higher the associated earning opportunities. The negative relation for firm size could be due to the reduced set of information available for investors when small firms are considered.…”

Section: Multivariate Analysismentioning

confidence: 99%

“…Botosan et al (2011);Reverte (2012); andMazzotta and Veltri (2014), we adopt unlevered beta (BETA U ), market-to-book value (MTBV), financial leverage (LEV), and firm size (SIZE) as the control variables.…”

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confidence: 99%

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The impact on the cost of equity capital in the effects of integrated reporting quality

et al. 2019

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Integrated reporting is a new reporting tool that includes financial and nonfinancial information, which represents a natural evolution of the corporate reporting movement. Although this practice has gained increasing attention in recent years, both from an academic and professional perspective, the quality of the reports still represents a critical aspect due to inadequate investigation. Only a few studies have focused on integrated reporting quality, and contributions on the effects of quality have been even rarer. This study aims to investigate on the impact of integrated reporting quality on the firm's cost of equity capital, owing to the paramount importance of this parameter for firms and investors. Our results highlight that integrated reporting quality has a significantly negative association with the cost of equity capital, suggesting that integrated reporting quality represents an innovative way to reduce the cost of equity. To our knowledge, this is the first study that examines the relationship between integrated reporting quality and a firm's cost of equity.

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Section: Model Specificationmentioning

confidence: 99%

Section: Multivariate Analysismentioning

confidence: 99%

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The impact on the cost of equity capital in the effects of integrated reporting quality

et al. 2019

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“…An effective corporate governance is thus expected to provide more reliability of public disclosures, to reduce the cost of capital and to improve firm effectiveness, so affecting firm performance (Jaggi et al, 2016;Mazzotta & Veltri, 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

The Association of Board Composition, Intellectual Capital and Firm Performance in a High Ownership Concentration Context: Evidence from Italy

Veltri¹,

Mazzotta²

2016

IJBM

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The association of Corporate Governance (CG) with Firm Performance (FP) has always been an issue relevant to management literature. Nevertheless, the notable heterogeneity of studies and their mixed results highlight the opportuneness of continuing to investigate the association of CG with FP. The article aims to contribute to this research by building and employing a sophisticated model to take into account beyond the board composition ownership structure and firm efficiency in using its intellectual capital (as measured by VAIC TM ). The findings provide evidence that the board composition, the ownership concentration and the efficiency of intellectual capital increases firm efficiency in producing profits (as measured by ROA). Furthermore, our findings add knowledge to the relationship between CG and FP, by confirming a positive relationship in Italy, a continental European capital market under-investigated on this issue

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“…Isso porque, considerando que o custo do capital de terceiros, no limite é inferior ao custo de capital próprio, e as empresas com melhores estruturas de governança apresentam uma menor percepção de risco frente aos credores, logo, existe um efeito marginal negativo no custo do capital de terceiros e, por conseguinte no custo médio ponderado do capital (TRAN, 2014;ANDRADE;BERNILE;HOOD III, 2014;MAZZOTTA;VELTRI, 2014).…”

Section: Teoria Da Estrutura De Capital E Governança Corporativa: O Qunclassified

Relação entre Níveis de Governança, Política de Dividendos, Endividamento e Valor das Empresas Brasileiras

Marques¹,

Alves²,

Amaral³

et al. 2015

RECFin

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The relationship between corporate governance and the cost of equity capital. Evidence from the Italian stock exchange

Cited by 45 publications

References 93 publications

The impact on the cost of equity capital in the effects of integrated reporting quality

The impact on the cost of equity capital in the effects of integrated reporting quality

The Association of Board Composition, Intellectual Capital and Firm Performance in a High Ownership Concentration Context: Evidence from Italy

Relação entre Níveis de Governança, Política de Dividendos, Endividamento e Valor das Empresas Brasileiras

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