IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v56y2024i46p5461-5476.html
   My bibliography  Save this article

Cash flow risk and the implied cost of equity capital

Author

Listed:
  • Huaibing Yu

Abstract

This study examines the effect of cash flow risk on the implied cost of equity capital. Empirical results indicate that firms with higher levels of cash flow risk are associated with more expensive equity financing. This positive relationship holds firmly after addressing potential endogeneity and is robust to alternative measures of cash flow risk and the implied cost of equity capital. Moreover, under the influence of firm quality, the positive relationship is more pronounced for firms with younger age and smaller size.

Suggested Citation

  • Huaibing Yu, 2024. "Cash flow risk and the implied cost of equity capital," Applied Economics, Taylor & Francis Journals, vol. 56(46), pages 5461-5476, October.
    • Handle: RePEc:taf:applec:v:56:y:2024:i:46:p:5461-5476
    DOI: 10.1080/00036846.2023.2257032
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2023.2257032
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2023.2257032?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:56:y:2024:i:46:p:5461-5476. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.