Footnote:
In: Research in International Business and Finance, 27(1):12-27, 2013
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 19, 2012 erstellt
Description:
We assess how owner's commitment to a firm influences the firm cost of capital, and whether the relation between the former and the latter is the consequence of the owner's higher opportunity cost of capital resulting from under-diversification. Using data on private Mediterranean firms and clustering projects by country, industry, and Initial Public Offering-year, we show that the cost of capital is magnified by entrepreneur's commitment, project total risk, and correlation between project and market return