Organization Capital and the Cost of Equity Financing in Medium-Sized Manufacturing Firms

• 成果类型: Article
• 署名作者: Attig, Najah; El Ghoul, Sadok
• 署名单位: Saint Marys University - Canada; University of Alberta
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12329
• 发表日期: 2018
• 页码: 1616-1644
• 关键词: management control-systems; ASSET PRICING TESTS; IMPLIED COST; Expected returns; Estimation risk; differential information; DEVELOPMENT EXPENDITURES; performance-measures; ANALYSTS FORECASTS; EARNINGS FORECASTS

摘要

We examine the effects of organization capital-evident in management quality practices-on firms' implied cost of equity. We show that superior management practices decrease firms' cost of equity capital. This novel finding, robust to a battery of sensitivity analyses and to endogeneity bias, highlights the importance of superior management practices in improving firms' financing conditions. In sum, this study demonstrates that the quality of management practices maps onto firms' financing conditions, stressing the value relevance of intangible assets.