Impact of Corporate Earnings on the Cost of Equity: An Empirical Study of Pakistani Textile Sector
European Business & Management
Volume 2, Issue 2, November 2016, Pages: 54-59
Received: Aug. 31, 2016; Accepted: Nov. 24, 2016; Published: Dec. 30, 2016
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Muhammad Ateeq ur Rehman, Lahore Business School, the University of Lahore, Lahore, Pakistan
Awais Raoof, Lahore Business School, the University of Lahore, Lahore, Pakistan
Syed Zulfiqar Ali Shah, Department of Management Sciences, International Islamic University, Islamabad, Pakistan
Ramiz ur Rehman, Lahore Business School, the University of Lahore, Lahore, Pakistan
Sajjad Ahmed, School of Business & Management Sciences, Minhaj University Lahore, Lahore, Pakistan
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The main purpose of this study is to investigate the relation between corporate earnings and cost of equity capital. Panel regression model is used to investigate the relation while Hausman test is applied to check the fixed and random effect. The study finds negative but weak relation between earnings and cost of equity capital. The study examines more intensity of fixed effect as compare to random effect.
Cost of Equity, Corporate Performance, EPS, Market Risk
To cite this article
Muhammad Ateeq ur Rehman, Awais Raoof, Syed Zulfiqar Ali Shah, Ramiz ur Rehman, Sajjad Ahmed, Impact of Corporate Earnings on the Cost of Equity: An Empirical Study of Pakistani Textile Sector, European Business & Management. Vol. 2, No. 2, 2016, pp. 54-59. doi: 10.11648/j.ebm.20160202.16
Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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