The Relative Cost of Capital for Marginal Firms over the Business Cycle

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The Relative Cost of Capital for Marginal Firms over the Business Cycle

Autumn 1992Volume 17, Number 3

Authors: Gikas A. Hardouvelis and Thierry A. Wizman

The authors compare the effects of the business cycle on the cost of capital faced by small, distressed firms and their larger, more financially secure counterparts. The analysis draws on stock market returns data for a broad range of traded companies during the 1963-91 period.

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15 pages / 354 kb

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