The cost of equity for private firms

被引：9

作者：

Abudy, Menachem ^{[1
]}

Benninga, Simon ^{[2
]}

Shust, Efrat ^{[3
]}

机构：

[1] Bar Ilan Univ, Grad Sch Business Adm, IL-5290002 Ramat Gan, Israel

[2] Tel Aviv Univ, Fac Management, POB 39040, IL-6997801 Tel Aviv, Israel

[3] Coll Management Acad Studies, Sch Business, Yitzhak Rabin Blvd, IL-7502501 Rishon Leziyyon, Israel

来源：

JOURNAL OF CORPORATE FINANCE | 2016年 / 37卷

关键词：

Non-marketability; Non-diversification; Cost of capital; Private firm valuation; CORPORATE; INVESTMENT; PLACEMENTS; LIQUIDITY; RETURNS; FINANCE; STOCK; DEBT; RISK;

D O I：

10.1016/j.jcorpfin.2016.01.014

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

The paper presents a method for calculating the cost of equity capital for the non-marketable securities of private firms and its difference from the cost of equity capital of an all else equal public firm (the private firm premium). The method is based on a theoretical framework that assumes the investor is undiversified due to her holdings in non-marketable securities. We implement the method for both unlevered and levered firms, and also consider the effect of taxes. The findings indicate that the private firm premium increases with the firm's asset risk, its leverage ratio, and the non-diversification of the private firm's owner, while taxes are negatively related to the private firm premium. (C) 2016 Elsevier B.V. All rights reserved.

引用

页码：431 / 443

页数：13

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