O poder das firmas sobre o custo de capital / Firms Power over Cost of Equity

AUTOR(ES)

Rafael Lopes Rogo

DATA DE PUBLICAÇÃO

2006

RESUMO

In this study, I use of the probability of an information event occurring in a trading day (ALPHA) as one determinant of the degree of information asymmetry. In a setting with two types of investors, informed and uninformed, the comparative advantage of being informed depends on the probability of occurrence of private signal. I find an inverse relation between the cost of equity and ALPHA, consistent with analytical models. Also, I find a positive relation between analyst following and the probability of private information, consistent with the hypotheses. As a main result in this study, given that ALPHA is statistically significant in explaining the cost of equity together with the fact that it is an exogenous variable, I discuss the possibility that managers may not possess a relatively high ability to influence information asymmetry attributes to procure lower cost of equity capital as previously documented in the literature (Botosan and Plumlee, 2006).

ASSUNTO(S)

probability of private information gestão econômica probabilidade de ocorrência de informação privada information asymmetry cost of equity capital custo de capital informação assimétrica (economia) economia gestão de negócios

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