Sector level cost of equity in African financial markets

Hearn, Bruce and Piesse, Jenifer (2009) Sector level cost of equity in African financial markets. Emerging Markets Review, 10 (4). pp. 257-278. ISSN 1566-0141

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Abstract

This paper assesses the effectiveness of Liu (2006) metrics in measuring illiquidity within a multifactor CAPM pricing model. Costs of equity are estimated using this model for the major sectors within Africa’s larger equity markets: Morocco, Tunisia, Egypt, Kenya, Nigeria, Zambia, Botswana and South Africa. In all countries, the cost of equity is found to be highest in the financial sector and lowest in the blue chip stocks of Tunisia, Morocco, Namibia and South Africa. At an aggregate level, Nigeria and Zambia have the highest cost of capital.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Business and Management
Subjects: H Social Sciences > HG Finance > HG4001 Finance management. Business finance. Corporation finance
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Depositing User: Bruce Hearn
Date Deposited: 24 Apr 2012 09:05
Last Modified: 07 Mar 2017 03:22
URI: http://sro.sussex.ac.uk/id/eprint/38161

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