The role of cost of capital in regulatory capital discrepancies among developing countries
Capital as a regulatory instrument has been shown to contribute to competitiveness distortions between developed and developing countries. There is a dearth of literature that analyses the possibility of further competitiveness discrepancies to which capital requirements may contribute among develop...
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| Format: | Article |
| Language: | English |
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AOSIS
2015-03-01
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| Series: | South African Journal of Economic and Management Sciences |
| Online Access: | https://sajems.org/index.php/sajems/article/view/869 |
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doaj-68f093c5ecba476498b4c9296fae90f12020-11-24T21:30:58ZengAOSISSouth African Journal of Economic and Management Sciences1015-88122222-34362015-03-011818410410.4102/sajems.v18i1.869412The role of cost of capital in regulatory capital discrepancies among developing countriesJohann Jacobs0Gary van Vuuren1North-West UniversityNorth-West UniversityCapital as a regulatory instrument has been shown to contribute to competitiveness distortions between developed and developing countries. There is a dearth of literature that analyses the possibility of further competitiveness discrepancies to which capital requirements may contribute among developing countries. This article explores whether regulatory capital requirements lead to unequal competitive conditions between developing countries based on their costs of capital. It also attempts to identify drivers of such discrepancies. Data of 52 financial institutions from 20 countries spread across 4 geographical regions are used for the analysis.https://sajems.org/index.php/sajems/article/view/869 |
| collection |
DOAJ |
| language |
English |
| format |
Article |
| sources |
DOAJ |
| author |
Johann Jacobs Gary van Vuuren |
| spellingShingle |
Johann Jacobs Gary van Vuuren The role of cost of capital in regulatory capital discrepancies among developing countries South African Journal of Economic and Management Sciences |
| author_facet |
Johann Jacobs Gary van Vuuren |
| author_sort |
Johann Jacobs |
| title |
The role of cost of capital in regulatory capital discrepancies among developing countries |
| title_short |
The role of cost of capital in regulatory capital discrepancies among developing countries |
| title_full |
The role of cost of capital in regulatory capital discrepancies among developing countries |
| title_fullStr |
The role of cost of capital in regulatory capital discrepancies among developing countries |
| title_full_unstemmed |
The role of cost of capital in regulatory capital discrepancies among developing countries |
| title_sort |
role of cost of capital in regulatory capital discrepancies among developing countries |
| publisher |
AOSIS |
| series |
South African Journal of Economic and Management Sciences |
| issn |
1015-8812 2222-3436 |
| publishDate |
2015-03-01 |
| description |
Capital as a regulatory instrument has been shown to contribute to competitiveness distortions between developed and developing countries. There is a dearth of literature that analyses the possibility of further competitiveness discrepancies to which capital requirements may contribute among developing countries.
This article explores whether regulatory capital requirements lead to unequal competitive conditions between developing countries based on their costs of capital. It also attempts to identify drivers of such discrepancies. Data of 52 financial institutions from 20 countries spread across 4 geographical regions are used for the analysis. |
| url |
https://sajems.org/index.php/sajems/article/view/869 |
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AT johannjacobs theroleofcostofcapitalinregulatorycapitaldiscrepanciesamongdevelopingcountries AT garyvanvuuren theroleofcostofcapitalinregulatorycapitaldiscrepanciesamongdevelopingcountries AT johannjacobs roleofcostofcapitalinregulatorycapitaldiscrepanciesamongdevelopingcountries AT garyvanvuuren roleofcostofcapitalinregulatorycapitaldiscrepanciesamongdevelopingcountries |
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