The influence of corporate governance quality on the cost of equity: Case of Russian companies

Abstract

The goal of the master thesis is to identify an influence between the quality of corporate governance of publicly traded companies and cost of equity. To reach this goal the following objectives were identified: analysis of literature, construction of a proxy for corporate governance quality, formulation of hypothesis on relationship between the cost of equity and the quality of corporate governance of a company. The results are the following: there is a negative correlation between the governance quality index RuGov and the cost of company equity; the most influence on the cost of equity have shareholder rights and investors relationship as well as information disclosure; less influence shows the board of directors, when the structure of ownership do not has any significant effect.