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Family owned firms (FOF) are the dominant part of business in all economies around the globe. The current study explores a new horizon and describes the paradox in connection with cost of equity (COE) and corporate governance index (CGI) in FOF of Pakistan. The panel data over the period of 2007-2016 are used in the study. The data are collected from annual financial reports of selected firms. Multiple regression models are applied to analyze the results. The study reveals a direct effect of CGI on CE. One unit increase in CGI causes 1.38 units decline in the CE. The study recommends that FOF should improve the CGI in order to control the COE.

Safdar Husain Tahir, Nabeeha Ghafoor, Gulzar Ahmad, Muhammad Rizwan Ullah, Muhammad Anwar ul Haq, Nadeem Iqbal. (2017) Corporate Governance and Cost of Equity Paradox: A Case of Family Firms in Emerging Markets , Journal of Managerial Sciences, Volume 11, Issue 4.
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