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
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.
Muhammad Ateeq ur Rehman,
Syed Zulfiqar Ali Shah,
Ramiz ur Rehman,
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.
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