The Cost of Equity: Evidence from Investment Banking Valuation
Journal of Financial and Quantitative Analysis
This study examines investment bankers’ cost of equity (COE) estimates, highlighting links to risk proxies (such as beta and size), and higher COEs in management buyouts to favor shareholder approval.
Feng (Jason) Guo is the Dean’s Fellow in Accounting and an associate professor of accounting. His paper is published in the Journal of Financial and Quantitative Analysis.