Cost of Agricultural Business Equity Capital—A Theoretical and Empirical Study for Poland
This paper proposes a methodology for calculating the cost of equity for unlisted agricultural companies in Poland. An analysis of a fixed effects panel model was conducted on a sample of 79 agricultural enterprises from the Farm Accountancy Data Network (FADN) field of observation in 2012&ndash...
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| Format: | Article |
| Language: | English |
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MDPI AG
2018-06-01
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| Series: | Economies |
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| Online Access: | http://www.mdpi.com/2227-7099/6/3/37 |
| _version_ | 1818001156640604160 |
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| author | Justyna Franc-Dąbrowska Magdalena Mądra-Sawicka Joanna Bereżnicka |
| author_facet | Justyna Franc-Dąbrowska Magdalena Mądra-Sawicka Joanna Bereżnicka |
| author_sort | Justyna Franc-Dąbrowska |
| collection | DOAJ |
| description | This paper proposes a methodology for calculating the cost of equity for unlisted agricultural companies in Poland. An analysis of a fixed effects panel model was conducted on a sample of 79 agricultural enterprises from the Farm Accountancy Data Network (FADN) field of observation in 2012–2015. The empirical model includes a value of land, agricultural area, depreciation, sale earnings, and payables. The study confirmed that in the valuation of the cost of equity capital in agricultural enterprises, factors that are specific to this sector must be taken into account. As the basic source of production is agricultural land, it must be taken into consideration while estimating the cost of equity capital. This factor was included in the theoretical model. |
| first_indexed | 2024-04-14T03:30:03Z |
| format | Article |
| id | doaj.art-59c1a6ca23464920869f699e20174825 |
| institution | Directory Open Access Journal |
| issn | 2227-7099 |
| language | English |
| last_indexed | 2024-04-14T03:30:03Z |
| publishDate | 2018-06-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj.art-59c1a6ca23464920869f699e201748252022-12-22T02:14:59ZengMDPI AGEconomies2227-70992018-06-01633710.3390/economies6030037economies6030037Cost of Agricultural Business Equity Capital—A Theoretical and Empirical Study for PolandJustyna Franc-Dąbrowska0Magdalena Mądra-Sawicka1Joanna Bereżnicka2Department of Finance, Faculty of Economic Sciences, Warsaw University of Life Sciences-SGGW, 02-787 Warsaw, PolandDepartment of Finance, Faculty of Economic Sciences, Warsaw University of Life Sciences-SGGW, 02-787 Warsaw, PolandDepartment of Finance, Faculty of Economic Sciences, Warsaw University of Life Sciences-SGGW, 02-787 Warsaw, PolandThis paper proposes a methodology for calculating the cost of equity for unlisted agricultural companies in Poland. An analysis of a fixed effects panel model was conducted on a sample of 79 agricultural enterprises from the Farm Accountancy Data Network (FADN) field of observation in 2012–2015. The empirical model includes a value of land, agricultural area, depreciation, sale earnings, and payables. The study confirmed that in the valuation of the cost of equity capital in agricultural enterprises, factors that are specific to this sector must be taken into account. As the basic source of production is agricultural land, it must be taken into consideration while estimating the cost of equity capital. This factor was included in the theoretical model.http://www.mdpi.com/2227-7099/6/3/37cost of equity capitalagricultural businessFarm Accountancy Data Network (FADN)farmland value factorrisk of the depreciation of farmland |
| spellingShingle | Justyna Franc-Dąbrowska Magdalena Mądra-Sawicka Joanna Bereżnicka Cost of Agricultural Business Equity Capital—A Theoretical and Empirical Study for Poland Economies cost of equity capital agricultural business Farm Accountancy Data Network (FADN) farmland value factor risk of the depreciation of farmland |
| title | Cost of Agricultural Business Equity Capital—A Theoretical and Empirical Study for Poland |
| title_full | Cost of Agricultural Business Equity Capital—A Theoretical and Empirical Study for Poland |
| title_fullStr | Cost of Agricultural Business Equity Capital—A Theoretical and Empirical Study for Poland |
| title_full_unstemmed | Cost of Agricultural Business Equity Capital—A Theoretical and Empirical Study for Poland |
| title_short | Cost of Agricultural Business Equity Capital—A Theoretical and Empirical Study for Poland |
| title_sort | cost of agricultural business equity capital a theoretical and empirical study for poland |
| topic | cost of equity capital agricultural business Farm Accountancy Data Network (FADN) farmland value factor risk of the depreciation of farmland |
| url | http://www.mdpi.com/2227-7099/6/3/37 |
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