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Time-varying Cost of Equity Capital in Southeast Asian Countries


  • Rashid Ameer


This paper investigates variation in the cost of equity capital for the Southeast Asian countries using firm-level data over the period of 1990-2004. It is found that decreases in the firm-level cost of equity capital have been associated with stock market liberalization and securities market development. The results of the present study suggest that earlier empirical evidence regarding the decrease in the cost of equity capital using country-level data cannot be generalized to different types of firms. There has been significant time variation in the cost of equity capital within countries and across firms. Copyright 2007 The Author Journal compilation 2007 East Asian Economic Association and Blackwell Publishing Ltd .

Suggested Citation

  • Rashid Ameer, 2007. "Time-varying Cost of Equity Capital in Southeast Asian Countries," Asian Economic Journal, East Asian Economic Association, vol. 21(2), pages 207-238, June.
  • Handle: RePEc:bla:asiaec:v:21:y:2007:i:2:p:207-238

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    References listed on IDEAS

    1. Glenn Jenkins & Chun-Yan Kuo, 2000. "Promoting Export–Oriented Foreign Direct Investment in Developing Countries: Tax and Customs Issues," Development Discussion Papers 2000-03, JDI Executive Programs.
    2. Ya-Hwei Yang, 1993. "Government Policy and Strategic Industries: The Case of Taiwan," NBER Chapters,in: Trade and Protectionism, NBER-EASE Volume 2, pages 387-411 National Bureau of Economic Research, Inc.
    3. Harberger, Arnold C, 1998. "A Vision of the Growth Process," American Economic Review, American Economic Association, vol. 88(1), pages 1-32, March.
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    Cited by:

    1. Shafaai, Shafizal & Masih, Mansur, 2013. "Determinants of cost of equity: The case of Shariah-compliant Malaysian firms," MPRA Paper 62364, University Library of Munich, Germany.
    2. Ameer, Rashid, 2014. "Financial constraints and corporate investment in Asian countries," Journal of Asian Economics, Elsevier, vol. 33(C), pages 44-55.
    3. Hearn, Bruce, 2010. "Time varying size and liquidity effects in South Asian equity markets: A study of blue-chip industry stocks," International Review of Financial Analysis, Elsevier, vol. 19(4), pages 242-257, September.
    4. Rashid Ameer, 2013. "Financial liberalization and firms’ capital structure adjustments evidence from Southeast Asia and South America," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 37(1), pages 1-32, January.
    5. Ameer, Rashid, 2010. "The role of institutional investors in the inventory and cash management practices of firms in Asia," Journal of Multinational Financial Management, Elsevier, vol. 20(2-3), pages 126-143, July.

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