Analisis Faktor-Faktor yang Mempengaruhi Cost of Equity Capital

Yesmarita, Yelen (2011) Analisis Faktor-Faktor yang Mempengaruhi Cost of Equity Capital. Undergraduate thesis, Universitas Internasional Batam.

Text Yelen Yesmarita_0741041.pdf - Published Version Restricted to Repository staff only Download (5MB)

Abstract

This research examines the influences of disclosure quality, market value, and beta on the cost of equity capital. The discussion about disclosure quality and its influences on the cost of equity capital becomes more interesting along with the government’s policies about mandatory disclosures. By studying the disclosure report (usually in the form of annual financial reports and annual reports), investors could assess the strengths, weaknesses, opportunities, and threats of a company where he/she will invest. Furthermore, by assessing the SWOT factors of a company, investors could project the investment risk, therefore he/she also could determined the required rate of return of the investment which manifested by the cost of equity capital. The research population is all companies that listed on Indonesian Stock Exchange in period 2005–2009. After selecting samples using purposive sampling, it was found 167 data from 35 companies. This data was tested using multiple regression methods through program statistical package for social science (SPSS). The regression analysis result shown that disclosure quality has a significant impact on the cost of equity capital, whereas market value and beta have no significant impacts on the cost of equity capital. Keywords: Disclosure quality, market value, beta, and the cost of equity capital.

Actions (login required)

View Item