Common ownership’s impact on the cost of equity capital : an empirical analysis of the DAX-30
Autor(a) principal: | |
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Data de Publicação: | 2023 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/42371 |
Resumo: | Common ownership has been rising at an extraordinary rate over the past years. Common ownership structures can have negative and positive effects in the cost of equity capital of firms. On one hand, the increase of collaboration between commonly owned firms will increase their cashflows covariance, resulting in a higher cost of equity capital. On the other hand, commonly owned firms’ anticompetitive behaviors will allow them to expand into new markets, internalize negative externalities and increase voluntary disclosure, resulting in a reduction of the cost of equity capital. In this thesis, I empirically investigate the impact of common ownership on the cost of equity capital of firms in the DAX-30 index. To do so, I regress Ohlson & Juettner-Nauroth (2005)’s cost of equity (discounted of the risk free rate) on three different proxies of common ownership. The estimation results are in line with previous results in the literature for U.S. firms, but also suggest that the impact of common ownership on the cost of equity capital depends critically on the proxy of common ownership used. |
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Common ownership’s impact on the cost of equity capital : an empirical analysis of the DAX-30Common ownershipCost of equity capitalDAX-30Custo de capital próprioDomínio/Área Científica::Ciências Sociais::Economia e GestãoCommon ownership has been rising at an extraordinary rate over the past years. Common ownership structures can have negative and positive effects in the cost of equity capital of firms. On one hand, the increase of collaboration between commonly owned firms will increase their cashflows covariance, resulting in a higher cost of equity capital. On the other hand, commonly owned firms’ anticompetitive behaviors will allow them to expand into new markets, internalize negative externalities and increase voluntary disclosure, resulting in a reduction of the cost of equity capital. In this thesis, I empirically investigate the impact of common ownership on the cost of equity capital of firms in the DAX-30 index. To do so, I regress Ohlson & Juettner-Nauroth (2005)’s cost of equity (discounted of the risk free rate) on three different proxies of common ownership. The estimation results are in line with previous results in the literature for U.S. firms, but also suggest that the impact of common ownership on the cost of equity capital depends critically on the proxy of common ownership used.Common ownership tem apresentado um crescimento extraordinário nos últimos anos. A presença de common ownership nas estruturas empresariais pode ter efeitos negativos e positivos no custo de capital próprio das empresas. Por um lado, o aumento da colaboração entre empresas detidas pelos mesmos investidores causa um aumento de covariância entre cash-flows, resultando num acréscimo do custo de capital próprio. Por outro lado, a redução de competição entre empresas detidas pelos mesmos investidores permite que estas empresas se foquem na expansão para novos mercados, internalizem externalidades negativas e aumentem a divulgação voluntária, resultando numa redução do custo de capital próprio. Na presente tese, eu investigo de forma empírica o impacto de common ownership no custo de capital próprio nas empresas do índice DAX-30. Para tal, regrido o custo de capital próprio de Ohlson & Juettner-Nauroth (2005) descontado da taxa sem risco, em três medidas de common ownership. Os resultados de estimação estão em linha com os resultados previamente obtidos na literatura para empresas dos E.U.A., mas também sugerem que o impacto de common ownership no custo de capital próprio está criticamente dependente da medida de common ownership utilizada.Ribeiro, Ricardo Miguel Martins da CostaVeritati - Repositório Institucional da Universidade Católica PortuguesaMendes, Diogo Teixeira Pimenta Marvão2023-09-14T17:17:37Z2023-07-1720232023-07-17T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/42371TID:203350090enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-09-19T01:42:27Zoai:repositorio.ucp.pt:10400.14/42371Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T20:29:34.983831Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Common ownership’s impact on the cost of equity capital : an empirical analysis of the DAX-30 |
title |
Common ownership’s impact on the cost of equity capital : an empirical analysis of the DAX-30 |
spellingShingle |
Common ownership’s impact on the cost of equity capital : an empirical analysis of the DAX-30 Mendes, Diogo Teixeira Pimenta Marvão Common ownership Cost of equity capital DAX-30 Custo de capital próprio Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
Common ownership’s impact on the cost of equity capital : an empirical analysis of the DAX-30 |
title_full |
Common ownership’s impact on the cost of equity capital : an empirical analysis of the DAX-30 |
title_fullStr |
Common ownership’s impact on the cost of equity capital : an empirical analysis of the DAX-30 |
title_full_unstemmed |
Common ownership’s impact on the cost of equity capital : an empirical analysis of the DAX-30 |
title_sort |
Common ownership’s impact on the cost of equity capital : an empirical analysis of the DAX-30 |
author |
Mendes, Diogo Teixeira Pimenta Marvão |
author_facet |
Mendes, Diogo Teixeira Pimenta Marvão |
author_role |
author |
dc.contributor.none.fl_str_mv |
Ribeiro, Ricardo Miguel Martins da Costa Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Mendes, Diogo Teixeira Pimenta Marvão |
dc.subject.por.fl_str_mv |
Common ownership Cost of equity capital DAX-30 Custo de capital próprio Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Common ownership Cost of equity capital DAX-30 Custo de capital próprio Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
Common ownership has been rising at an extraordinary rate over the past years. Common ownership structures can have negative and positive effects in the cost of equity capital of firms. On one hand, the increase of collaboration between commonly owned firms will increase their cashflows covariance, resulting in a higher cost of equity capital. On the other hand, commonly owned firms’ anticompetitive behaviors will allow them to expand into new markets, internalize negative externalities and increase voluntary disclosure, resulting in a reduction of the cost of equity capital. In this thesis, I empirically investigate the impact of common ownership on the cost of equity capital of firms in the DAX-30 index. To do so, I regress Ohlson & Juettner-Nauroth (2005)’s cost of equity (discounted of the risk free rate) on three different proxies of common ownership. The estimation results are in line with previous results in the literature for U.S. firms, but also suggest that the impact of common ownership on the cost of equity capital depends critically on the proxy of common ownership used. |
publishDate |
2023 |
dc.date.none.fl_str_mv |
2023-09-14T17:17:37Z 2023-07-17 2023 2023-07-17T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/42371 TID:203350090 |
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http://hdl.handle.net/10400.14/42371 |
identifier_str_mv |
TID:203350090 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
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info:eu-repo/semantics/openAccess |
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openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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