Journal Article

Relative cost of capital for marginal firms over the business cycle


Abstract: 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.

Keywords: Capital; Business cycles; Corporations - Finance;

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Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Quarterly Review

Publication Date: 1992

Volume: 17

Issue: Aut

Pages: 44-58