Please use this identifier to cite or link to this item: https://essuir.sumdu.edu.ua/handle/123456789/89520
Or use following links to share this resource in social networks: Recommend this item
Title Correlation between cost of capital, book values and shares prices: evidence from Qatar stock exchange
Authors Tahat, I.
ORCID
Keywords балансова вартість
балансовая стоимость
book value
ринкові ціни
рыночные цены
market prices
вартість капіталу
стоимость капитала
cost of capital
релевантність вартості
релевантность стоимости
value relevance
Катар
Qatar
Type Article
Date of Issue 2022
URI https://essuir.sumdu.edu.ua/handle/123456789/89520
Publisher Sumy State University
License Creative Commons Attribution 4.0 International License
Citation Tahat, I. (2022). Correlation between Cost of Capital, Book Values and Shares Prices: Evidence from Qatar Stock Exchange. Financial Markets, Institutions and Risks, 6(3), 40-48. https://doi.org/10.21272/fmir.6(3).40-48.2022
Abstract This study investigates the link between the cost of capital, and both share book values and market prices on Qatari Stock Exchange. The rational of this test suggested that their relationship between the published financial data and decision making as result of complying with transparent disclosure, in capital markets which suggested that this data has lost its value relevance to shareholders. Ohlson (1995) basic equity valuation model applied in this research, which linked to the firm’s equity market value to book values adjusted for abnormal returns. Data used in this study represent all listed firms on Qatari Stock Exchange, to test this assumption for the period from 2010 to 2019. The result indicated a negative correlation among cost of capital and both firms book values and share market prices. Firms bearing higher risks are predicted to earn higher returns. According to the study’s findings, statistical evidence supports the claim that raising the amount of leverage raises the risk for equity shareholders. Because of an increase in leverage results in a higher expected return on investment to compensate equity shareholders for the increased risk.
Appears in Collections: Financial Markets, Institutions and Risks (FMIR)

Views

Austria Austria
326
Canada Canada
1458
China China
1
Congo - Kinshasa Congo - Kinshasa
1
Egypt Egypt
1
Germany Germany
1
India India
1
Indonesia Indonesia
1
Ireland Ireland
2919
Jordan Jordan
350
Nigeria Nigeria
1
Pakistan Pakistan
1
Portugal Portugal
1
Russia Russia
79
Saudi Arabia Saudi Arabia
1
Singapore Singapore
16186609
Ukraine Ukraine
181709
United Kingdom United Kingdom
82627
United States United States
34072721
Unknown Country Unknown Country
1430025

Downloads

China China
1
Congo - Kinshasa Congo - Kinshasa
1
Egypt Egypt
1
France France
1
Indonesia Indonesia
1460
Iran Iran
1461
Ireland Ireland
1
Jordan Jordan
1
Kenya Kenya
1
Morocco Morocco
1
Philippines Philippines
11314
Saudi Arabia Saudi Arabia
1
Singapore Singapore
1
Ukraine Ukraine
352104
United Kingdom United Kingdom
82628
United States United States
16186608
Unknown Country Unknown Country
1

Files

File Size Format Downloads
Tahat_fmir_3_2022.pdf 363.93 kB Adobe PDF 16635586

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.