Proceedings of the 2nd International Seminar on Business, Economics, Social Science and Technology (ISBEST 2019)

Cost of Equity: Disclosure, Size, and Political Connection

Authors
Nindya Farah Dwi Puspitasari, Ika Pratiwi Simbolon, Nindhita Nisrina Sari
Corresponding Author
Nindya Farah Dwi Puspitasari
Available Online 25 May 2020.
DOI
https://doi.org/10.2991/aebmr.k.200522.010How to use a DOI?
Keywords
cost of equity, disclosure, political connection, capital asset pricing model, size
Abstract
Every businesses are looking for high return. The cost of equity is important to determine the return on investment. This research aims to examine the relationship between disclosure and political connection towards cost of equity. Cost of equity in this research is using Capital Asset Pricing Model (CAPM) approach. The sample used is from manufacture companies listed on Indonesia Stock Exchange from 2014-2017. The regression analysis results indicate that disclosure has negative relationship toward cost of equity. Likewise, the political connection has negative relationship toward cost of equity. Moreover, the size also has negative relationship toward the cost of equity in the companies.
Open Access
This is an open access article distributed under the CC BY-NC license.

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Cite this article

TY  - CONF
AU  - Nindya Farah Dwi Puspitasari
AU  - Ika Pratiwi Simbolon
AU  - Nindhita Nisrina Sari
PY  - 2020
DA  - 2020/05/25
TI  - Cost of Equity: Disclosure, Size, and Political Connection
BT  - Proceedings of the 2nd International Seminar on Business, Economics, Social Science and Technology (ISBEST 2019)
PB  - Atlantis Press
SP  - 46
EP  - 53
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200522.010
DO  - https://doi.org/10.2991/aebmr.k.200522.010
ID  - Puspitasari2020
ER  -