We examine the effects of organization capital — evident in management quality practices — on firms' implied cost of equity. We show that superior management practices decrease firms' cost of equity capital. This novel finding, robust to a battery of sensitivity analyses and to endogeneity...

Using the difference-in-difference approach, we find that the staggered enactment of anti-recharacterization laws, which strengthened creditor rights by enhancing the ability of creditors to repossess collateral during bankruptcy, leads to higher cost of equity capital of the treated firms. We...

We examine the influence of institutional investors' investment horizons on a firm's cost of equity. We argue that the cost of equity will decrease in the presence of institutional investors with longer-term investment horizons due to improved monitoring and information quality. Our empirical...