Cost of Equity: Disclosure, Size, and Political Connection
Nindya Farah Dwi Puspitasari, Ika Pratiwi Simbolon, Nindhita Nisrina Sari
Nindya Farah Dwi Puspitasari
Available Online 25 May 2020.
- https://doi.org/10.2991/aebmr.k.200522.010How to use a DOI?
- cost of equity, disclosure, political connection, capital asset pricing model, size
- 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.
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 -