The cost of equity of internet stocks: a downside risk approach
Year: 2004
Type: article
Abstract: Beta as a measure of risk has been under fire for many years. Although practitioners still widely use the CAPM to estimate the cost of equity, they are aware of its problems and looking for alternatives. A possible alternative is to estimate the cost of equity based on the semideviation, a well-known, intuitively-plausible measure of downside risk. Complementing evidence reported elsewhere by the author about the power of the semideviation to explain the cross section of returns in emerging markets and industries in emerging markets, this article reports results showing that the semideviation also explains the cross section of Internet stock returns.
Source: European Journal of Finance
Author: Javier Estrada *
Institutions: IESE Business School, ESE Business School
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2120733280