Abstract
This study provides a theoretical review on the possible correlation between goodwill asset and cost of equity capital. Up to now previous literatures document mixed economic consequences of goodwill asset, and the correlation cannot be determined with ease. Both positive correlation and negative correlation might be observed. Further, such a relationship is expected to be moderated by ultimate ownership and management power, with a more significant correlation when the sample is a state owned enterprise or when management power is strong. However, these hypotheses above need to be tested and supported empirically by future study.
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Shi, H. (2018). Goodwill Asset, Ultimate Ownership, Management Power and Cost of Equity Capital: A Theoretical Review. In: Yuan, H., Geng, J., Liu, C., Bian, F., Surapunt, T. (eds) Geo-Spatial Knowledge and Intelligence. GSKI 2017. Communications in Computer and Information Science, vol 848. Springer, Singapore. https://doi.org/10.1007/978-981-13-0893-2_22
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DOI: https://doi.org/10.1007/978-981-13-0893-2_22
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