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dc.contributor.authorKwabi, Franken
dc.contributor.authorBoateng, Agyenimen
dc.contributor.authorAdegbite, Emmanuelen
dc.date.accessioned2018-07-24T14:52:46Z
dc.date.available2018-07-24T14:52:46Z
dc.date.issued2018-07-20
dc.identifier.citationKwabi, F., Boateng, A. and Adegbite, E. (2018) The impact of stringent insider trading laws and institutional quality on the cost of capital. International Review of Financial Analysis, 60, pp. 127-137en
dc.identifier.urihttp://hdl.handle.net/2086/16393
dc.descriptionThe file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.en
dc.description.abstractThis paper examines the effects of interaction between stringent insider trading laws, institutional quality and equity portfolio allocation on the cost of capital. Using a dataset drawn from 44 countries over the period from 2001-2015, we find that stringent insider trading laws interact with institutional quality and foreign equity portfolio allocation to reduce the country-level cost of capital. Further analysis from a quasi-natural experiment based on the 2008-2009 global financial crisis suggests that the findings are robust to endogeneity. Our results imply that the enactment of stringent insider trading laws and their interplay with the quality of institutions are not only important to portfolio investment allocation decisions but reduce the country-level cost of capital.en
dc.language.isoenen
dc.publisherElsevieren
dc.subjectInsider trading lawsen
dc.subjectCost of capitalen
dc.subjectForeign equity allocationen
dc.subjectInstitutional qualityen
dc.titleThe impact of stringent insider trading laws and institutional quality on the cost of capitalen
dc.typeArticleen
dc.identifier.doihttps://dx.doi.org/10.1016/j.irfa.2018.07.011
dc.researchgroupFiBReen
dc.peerreviewedYesen
dc.funderN/Aen
dc.projectidN/Aen
dc.cclicenceCC-BY-NC-NDen
dc.date.acceptance2018-07-20en
dc.researchinstituteFinance and Banking Research Group (FiBRe)en


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