Business, Management and Accounting
3 years ago

Cost of capital negatively impacts Kuwaiti companies' book and market values.

SSRN Electronic Journal
Correlation Among Cost of Capital, Book Values & Shares Prices: The Case of Kuwait Listed Companies
Mohamad H. Atyeh, Wael Al-Rashed

Paper Summary

The study looked at how the cost of capital is related to the book values and market prices of companies listed on the Kuwait Stock Exchange. They used a model to analyze the data from Kuwaiti firms between 2005 and 2011. The results showed a negative correlation between the cost of capital and companies' book values, as well as the cost of capital and companies' market values.

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