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Impact Of Financial Crisis On Construction Firm`S Cost Of Capital

Author

Listed:
  • Nistor Ioan

    () (Business Faculty)

  • Ulici (Ciupac-Ulici) Maria

    () (Babes-Bolyai University, Faculty of Economics and Business Administration)

  • Schiau (Macavei) Laura Liana

    (Babes-Bolyai University, Faculty of Economics and Business Administration)

Abstract

The average cost of debt is negatively related with size, tangibility, firm growth, the leverage ratio, and the ratio of long- to short-term debt and positively to profitability. We find that the recent international crisis did have a significant impact on the set of firms in our sample, but affected the way in which leverage and the interest to debt ratio relate to firm fundamentals. In this article, we want to study the impact of financial crisis on the cost of capital using a sample of construction companies.

Suggested Citation

  • Nistor Ioan & Ulici (Ciupac-Ulici) Maria & Schiau (Macavei) Laura Liana, 2010. "Impact Of Financial Crisis On Construction Firm`S Cost Of Capital," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 616-622, December.
  • Handle: RePEc:ora:journl:v:1:y:2010:i:2:p:616-622
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    File URL: http://anale.steconomiceuoradea.ro/volume/2010/n2/097.pdf
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    References listed on IDEAS

    as
    1. Vito Polito, 2009. "Measuring the Effective Tax Burden in the Real World," Fiscal Studies, Institute for Fiscal Studies, pages 247-278.
    2. Julie Collins & Douglas Shackelford, 1995. "Corporate domicile and average effective tax rates: The cases of Canada, Japan, the United Kingdom, and the United States," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 2(1), pages 55-83, February.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    asset pricing cost of capital; financial crisis; CAPM;

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G01 - Financial Economics - - General - - - Financial Crises
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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