The Relationship between Media Coverage and Cost of Equity Capital.
| Autor: | WEN-CHENG FU, 傅文正 |
|---|---|
| Rok vydání: | 2017 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 105 In this generation, network and technology are developing rapidly. Therefore, the spread of information is very fast. The news is a conduit where everyone is the most easy to receive information. Many individual investors will be in accordance with the news and according to the company’s news to judge. In recent decades, a number of major fraud cases have erupted, it makes the government to develop more rules for the company's financial statements, but it makes some individual investors can not understand the meaning of information because of the complexity financial statement. Therefore, the individual investors use the media reported as the basis for their investment. This study uses 2011 to 2015 listed SEC & OTC as sample in Taiwan. To explore whether investors will be due to the media related reports, and effect the company's cost of equity capital. The results are as follows, media coverage can reduce the information asymmetry between investor and manager. In addition, positive news exposure will decrease company’s Cost of Capital equity, while negative news exposure will increase company’s Cost of equity. Confirmed positive and negative news exposure, will have an impact on the cost of equity. It represents that investors will affect the company’s cost of equity becase of the positive and negative media coverage. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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