Literature Review on the Impact of Corporate Governance on the Cost of Equity Capital

Siyu Cao

doi:10.54691/c5bswz51

Authors

Siyu Cao

DOI:

https://doi.org/10.54691/c5bswz51

Keywords:

Corporate Governance; Cost of Equity Capital; Policy Recommendations.

Abstract

Through a review of domestic and international literature, this study finds that corporate governance influences a company's cost of equity capital through various aspects. The most significant factors include company characteristics, information disclosure, internal control quality, equity balance, and the legal environment. Understanding these key factors provides a starting point for reducing the cost of equity capital. Based on existing research, targeted recommendations are proposed to enhance corporate governance, strengthen the confidence of minority shareholders, lower the cost of equity capital, improve corporate governance structures, and increase company value.

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