European Business & Management

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Impact of Corporate Earnings on the Cost of Equity: An Empirical Study of Pakistani Textile Sector

Received: 31 August 2016    Accepted: 24 November 2016    Published: 30 December 2016
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Abstract

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.

DOI 10.11648/j.ebm.20160202.16
Published in European Business & Management (Volume 2, Issue 2, November 2016)
Page(s) 54-59
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Cost of Equity, Corporate Performance, EPS, Market Risk

References
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Author Information
  • Lahore Business School, the University of Lahore, Lahore, Pakistan

  • Lahore Business School, the University of Lahore, Lahore, Pakistan

  • Department of Management Sciences, International Islamic University, Islamabad, Pakistan

  • Lahore Business School, the University of Lahore, Lahore, Pakistan

  • School of Business & Management Sciences, Minhaj University Lahore, Lahore, Pakistan

Cite This Article
  • APA Style

    Muhammad Ateeq ur Rehman, Awais Raoof, Syed Zulfiqar Ali Shah, Ramiz ur Rehman, Sajjad Ahmed. (2016). Impact of Corporate Earnings on the Cost of Equity: An Empirical Study of Pakistani Textile Sector. European Business & Management, 2(2), 54-59. https://doi.org/10.11648/j.ebm.20160202.16

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    ACS Style

    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. Eur. Bus. Manag. 2016, 2(2), 54-59. doi: 10.11648/j.ebm.20160202.16

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    AMA Style

    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. Eur Bus Manag. 2016;2(2):54-59. doi: 10.11648/j.ebm.20160202.16

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  • @article{10.11648/j.ebm.20160202.16,
      author = {Muhammad Ateeq ur Rehman and Awais Raoof and Syed Zulfiqar Ali Shah and Ramiz ur Rehman and Sajjad Ahmed},
      title = {Impact of Corporate Earnings on the Cost of Equity: An Empirical Study of Pakistani Textile Sector},
      journal = {European Business & Management},
      volume = {2},
      number = {2},
      pages = {54-59},
      doi = {10.11648/j.ebm.20160202.16},
      url = {https://doi.org/10.11648/j.ebm.20160202.16},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ebm.20160202.16},
      abstract = {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.},
     year = {2016}
    }
    

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    T1  - Impact of Corporate Earnings on the Cost of Equity: An Empirical Study of Pakistani Textile Sector
    AU  - Muhammad Ateeq ur Rehman
    AU  - Awais Raoof
    AU  - Syed Zulfiqar Ali Shah
    AU  - Ramiz ur Rehman
    AU  - Sajjad Ahmed
    Y1  - 2016/12/30
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    DO  - 10.11648/j.ebm.20160202.16
    T2  - European Business & Management
    JF  - European Business & Management
    JO  - European Business & Management
    SP  - 54
    EP  - 59
    PB  - Science Publishing Group
    SN  - 2575-5811
    UR  - https://doi.org/10.11648/j.ebm.20160202.16
    AB  - 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.
    VL  - 2
    IS  - 2
    ER  - 

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