{"id":"https://openalex.org/W2056209331","doi":"https://doi.org/10.1111/j.1745-6622.1999.tb00027.x","title":"GOLBALIZATION, CORPORATE FINANCE, AND THE COST OF CAPITAL","display_name":"GOLBALIZATION, CORPORATE FINANCE, AND THE COST OF CAPITAL","publication_year":1999,"publication_date":"1999-09-01","ids":{"openalex":"https://openalex.org/W2056209331","doi":"https://doi.org/10.1111/j.1745-6622.1999.tb00027.x","mag":"2056209331"},"language":"en","primary_location":{"id":"doi:10.1111/j.1745-6622.1999.tb00027.x","doi":"https://doi.org/10.1111/j.1745-6622.1999.tb00027.x","is_oa":false,"landing_page_url":"https://doi.org/10.1111/j.1745-6622.1999.tb00027.x","pdf_url":null,"source":{"id":"https://openalex.org/S4394735563","display_name":"Journal of applied corporate finance","issn_l":"1078-1196","issn":["1078-1196","1745-6622","1936-8216"],"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":["abdc-a","anvur-scientific","fnege-4","jufo-1","norway-1","poland-40","russia-white-list-2","vabb-shw"],"host_organization":null,"host_organization_name":null,"host_organization_lineage":[],"host_organization_lineage_names":[],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Journal of Applied Corporate Finance","raw_type":"journal-article"},"volume":null,"type":"article","is_traditional":true,"indexed_in":["crossref"],"open_access":{"is_oa":false,"oa_status":"closed","oa_url":null,"any_repository_has_fulltext":false},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5004620923","display_name":"Ren\u00e9 M. Stulz","orcid":"https://orcid.org/0000-0003-2956-4806","observed_orcids":["https://orcid.org/0000-0003-2956-4806"]},"institutions":[{"id":"https://openalex.org/I1321305853","display_name":"National Bureau of Economic Research","ror":"https://ror.org/04grmx538","country_code":"US","type":"nonprofit","lineage":["https://openalex.org/I1321305853"]},{"id":"https://openalex.org/I52357470","display_name":"The Ohio State University","ror":"https://ror.org/00rs6vg23","country_code":"US","type":"education","lineage":["https://openalex.org/I52357470"]}],"countries":["US"],"is_corresponding":true,"raw_author_name":"Ren\u00e9 M. Stulz","raw_affiliation_strings":["holds the Everett D. Reese Chair of Banking and Monetary Economics at The Ohio State University, and is a Research Associate of the NBER. He is also Editor of the Journal of Finance. *"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"holds the Everett D. Reese Chair of Banking and Monetary Economics at The Ohio State University, and is a Research Associate of the NBER. He is also Editor of the Journal of Finance. *","institution_ids":["https://openalex.org/I1321305853","https://openalex.org/I52357470"]}]}],"institutions":[],"countries_distinct_count":1,"institutions_distinct_count":2,"corresponding_author_ids":["https://openalex.org/A5004620923"],"corresponding_institution_ids":["https://openalex.org/I1321305853","https://openalex.org/I52357470"],"apc_list":{"value":2900,"currency":"USD","value_usd":2900},"apc_paid":null,"fwci":39.778,"has_fulltext":false,"cited_by_count":1200,"citation_normalized_percentile":{"value":0.99574593,"is_in_top_1_percent":true,"is_in_top_10_percent":true},"cited_by_percentile_year":{"min":99,"max":100},"biblio":{"volume":"12","issue":"3","first_page":"8","last_page":"25"},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T10019","display_name":"Corporate Finance and Governance","score":0.7240999937057495,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T10019","display_name":"Corporate Finance and Governance","score":0.7240999937057495,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T10047","display_name":"Financial Markets and Investment Strategies","score":0.1039000004529953,"subfield":{"id":"https://openalex.org/subfields/2003","display_name":"Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T12675","display_name":"Financial Reporting and Valuation Research","score":0.07989999651908875,"subfield":{"id":"https://openalex.org/subfields/1408","display_name":"Strategy and Management"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/globalization","display_name":"globalization","score":0.8700000047683716},{"id":"https://openalex.org/keywords/cost-of-capital","display_name":"cost of capital","score":0.9409999847412109},{"id":"https://openalex.org/keywords/international-capital-markets","display_name":"international capital markets","score":0.9309999942779541},{"id":"https://openalex.org/keywords/corporate-governance","display_name":"corporate governance","score":0.8059999942779541},{"id":"https://openalex.org/keywords/cross-border-capital-raising","display_name":"cross-border capital raising","score":0.6019999980926514},{"id":"https://openalex.org/keywords/systematic-risk","display_name":"systematic risk","score":0.7509999871253967},{"id":"https://openalex.org/keywords/beta","display_name":"beta","score":0.6159999966621399},{"id":"https://openalex.org/keywords/diversification","display_name":"diversification","score":0.5460000038146973},{"id":"https://openalex.org/keywords/emerging-markets","display_name":"emerging markets","score":0.4390000104904175},{"id":"https://openalex.org/keywords/international-financial-markets","display_name":"international financial markets","score":0.4189999997615814}],"concepts":[{"id":"https://openalex.org/C143910263","wikidata":"https://www.wikidata.org/wiki/Q750458","display_name":"Capital market","level":2,"score":0.6367736458778381},{"id":"https://openalex.org/C74734477","wikidata":"https://www.wikidata.org/wiki/Q1479274","display_name":"Cost of capital","level":3,"score":0.5935938358306885},{"id":"https://openalex.org/C144133560","wikidata":"https://www.wikidata.org/wiki/Q4830453","display_name":"Business","level":0,"score":0.5728480815887451},{"id":"https://openalex.org/C143801662","wikidata":"https://www.wikidata.org/wiki/Q5384683","display_name":"Equity capital markets","level":3,"score":0.5258501172065735},{"id":"https://openalex.org/C121087249","wikidata":"https://www.wikidata.org/wiki/Q546395","display_name":"Emerging markets","level":2,"score":0.483980655670166},{"id":"https://openalex.org/C44750222","wikidata":"https://www.wikidata.org/wiki/Q1897397","display_name":"Financial capital","level":3,"score":0.4388046860694885},{"id":"https://openalex.org/C112723951","wikidata":"https://www.wikidata.org/wiki/Q7336262","display_name":"Risk appetite","level":3,"score":0.43573620915412903},{"id":"https://openalex.org/C10138342","wikidata":"https://www.wikidata.org/wiki/Q43015","display_name":"Finance","level":1,"score":0.43362754583358765},{"id":"https://openalex.org/C199728807","wikidata":"https://www.wikidata.org/wiki/Q2578557","display_name":"Equity (law)","level":2,"score":0.42887917160987854},{"id":"https://openalex.org/C73283319","wikidata":"https://www.wikidata.org/wiki/Q1416617","display_name":"Financial system","level":1,"score":0.40423479676246643},{"id":"https://openalex.org/C556758197","wikidata":"https://www.wikidata.org/wiki/Q580018","display_name":"Monetary economics","level":1,"score":0.4009513854980469},{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.36132490634918213},{"id":"https://openalex.org/C34447519","wikidata":"https://www.wikidata.org/wiki/Q179522","display_name":"Market economy","level":1,"score":0.24373209476470947},{"id":"https://openalex.org/C71110296","wikidata":"https://www.wikidata.org/wiki/Q476115","display_name":"Private equity","level":2,"score":0.22342288494110107},{"id":"https://openalex.org/C32896092","wikidata":"https://www.wikidata.org/wiki/Q189447","display_name":"Risk management","level":2,"score":0.2073577642440796},{"id":"https://openalex.org/C2776943663","wikidata":"https://www.wikidata.org/wiki/Q165687","display_name":"Human capital","level":2,"score":0.1030934751033783},{"id":"https://openalex.org/C17744445","wikidata":"https://www.wikidata.org/wiki/Q36442","display_name":"Political science","level":0,"score":0.0},{"id":"https://openalex.org/C199539241","wikidata":"https://www.wikidata.org/wiki/Q7748","display_name":"Law","level":1,"score":0.0},{"id":"https://openalex.org/C29122968","wikidata":"https://www.wikidata.org/wiki/Q1414816","display_name":"Incentive","level":2,"score":0.0}],"mesh":[],"locations_count":1,"locations":[{"id":"doi:10.1111/j.1745-6622.1999.tb00027.x","doi":"https://doi.org/10.1111/j.1745-6622.1999.tb00027.x","is_oa":false,"landing_page_url":"https://doi.org/10.1111/j.1745-6622.1999.tb00027.x","pdf_url":null,"source":{"id":"https://openalex.org/S4394735563","display_name":"Journal of applied corporate finance","issn_l":"1078-1196","issn":["1078-1196","1745-6622","1936-8216"],"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":["abdc-a","anvur-scientific","fnege-4","jufo-1","norway-1","poland-40","russia-white-list-2","vabb-shw"],"host_organization":null,"host_organization_name":null,"host_organization_lineage":[],"host_organization_lineage_names":[],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Journal of Applied Corporate Finance","raw_type":"journal-article"}],"best_oa_location":null,"sustainable_development_goals":[],"study_designs":[],"awards":[],"funders":[],"has_content":{"pdf":false,"grobid_xml":false},"content_urls":null,"referenced_works_count":9,"referenced_works":["https://openalex.org/W2039733215","https://openalex.org/W2045566935","https://openalex.org/W2046519558","https://openalex.org/W2049830183","https://openalex.org/W2111187892","https://openalex.org/W2131538393","https://openalex.org/W3123091495","https://openalex.org/W3123226880","https://openalex.org/W3123518332"],"related_works":["https://openalex.org/W4214606488","https://openalex.org/W3026976679","https://openalex.org/W7217154165","https://openalex.org/W2499344872","https://openalex.org/W3122120984","https://openalex.org/W2098092104","https://openalex.org/W2738520987","https://openalex.org/W7099755411","https://openalex.org/W181287730","https://openalex.org/W2491795222"],"abstract_inverted_index":{"International":[0],"financial":[1],"markets":[2,127,144,155,161,308,375],"are":[3,30,67,121,341],"progressively":[4],"becoming":[5],"one":[6],"huge,":[7],"integrated,":[8],"global":[9,37,41,99,126,272,306,321,354,374,380,390,416],"capital":[10,50,108,154,157,200,307,337],"market\u2014a":[11],"development":[12],"that":[13,29,120,188,206,340,382,407],"is":[14,202,311],"contributing":[15],"to":[16,35,98,124,138,196,204,286,305,315,319,357,373],"higher":[17],"stock":[18,284],"prices":[19],"in":[20,94,105,117,142,150,158,190,217,224,234,423],"developed":[21,169],"as":[22,24,145,386,418,420],"well":[23,419],"developing":[25],"economies.":[26],"For":[27,193,301],"companies":[28,93,116,194,240,302,370],"large":[31],"and":[32,51,76,221,241,256],"visible":[33],"enough":[34],"attract":[36],"investors,":[38,209],"having":[39,45],"a":[40,46,53,78,225,277,345,353,363,379,384],"shareholder":[42],"base":[43],"means":[44],"lower":[47],"cost":[48,106,335,366],"of":[49,65,107,162,183,238,268,276,290,296,324,336,362,367,388,392,404,410,414],"hence":[52,77],"greater":[54],"equity":[55,66,85,279],"value":[56],"for":[57,81,91,128,140],"two":[58],"main":[59],"reasons:":[60],"First,":[61],"because":[62,338],"the":[63,102,125,129,159,165,184,235,244,263,274,283,287,291,297,316,320,325,334,359,389,398,401,411,415,421],"risks":[64,339],"shared":[68],"among":[69],"more":[70,173,207,212,228,313],"investors":[71],"with":[72,96,152,167,211,303,371],"different":[73,79],"portfolio":[74,391],"exposures":[75],"\u201cappetite\u201d":[80],"bearing":[82],"certain":[83],"risks,":[84],"market":[86,253,293,299],"risk":[87,132,254,425],"premiums":[88,133,255],"should":[89,376],"fall":[90,139],"all":[92,369],"countries":[95,151,163],"access":[97,123,304,372],"markets.":[100,192],"Although":[101],"largest":[103],"reductions":[104],"resulting":[109],"from":[110],"globalization":[111,260],"will":[112,215,332],"be":[113,136,349],"experienced":[114],"by":[115,351],"liberalizing":[118],"economies":[119],"gaining":[122],"first":[130],"time,":[131],"can":[134,348],"also":[135,178,261],"expected":[137],"firms":[141,149],"long\u2010integrated":[143],"well.":[146],"Second,":[147],"when":[148],"less\u2010developed":[153,197],"raise":[156,249],"public":[160],"(like":[164],"U.S.)":[166],"highly":[168],"markets,":[170,198,273],"they":[171,177,248],"get":[172],"than":[174,318],"lower\u2010cost":[175],"capital;":[176],"import":[179],"at":[180],"least":[181],"aspects":[182],"corporate":[185,258],"governance":[186],"systems":[187],"prevail":[189],"those":[191,239],"accustomed":[195],"raising":[199],"overseas":[201],"likely":[203],"mean":[205],"sophisticated":[208],"armed":[210],"advanced":[213],"technologies,":[214],"participate":[216],"monitoring":[218,230],"their":[219],"performance":[220,237],"management.":[222],"And,":[223],"virtuous":[226],"cycle,":[227],"effective":[229],"increases":[231],"investor":[232],"confidence":[233],"future":[236],"so":[242],"improves":[243],"terms":[245],"on":[246,281],"which":[247],"capital.":[250],"Besides":[251],"reducing":[252],"improving":[257],"governance,":[259],"affects":[262],"systematic":[264],"risk,":[265],"or":[266],"\u201cbeta,\u201d":[267],"individual":[269],"companies.":[270],"In":[271,394],"beta":[275],"firm's":[278],"depends":[280],"how":[282],"contributes":[285],"volatility":[288],"not":[289,342],"home":[292],"portfolio,":[294],"but":[295],"world":[298,424],"portfolio.":[300,355],"whose":[309],"profitability":[310],"tied":[312],"closely":[314],"local":[317],"economy,":[322],"use":[323],"traditional":[326],"Capital":[327],"Asset":[328],"Pricing":[329],"Model":[330],"(CAPM)":[331],"overstate":[333],"diversifiable":[343],"within":[344],"national":[346],"economy":[347],"diversified":[350],"holding":[352],"Thus,":[356],"reflect":[358],"new":[360],"reality":[361],"globally":[364],"determined":[365],"capital,":[368],"consider":[377],"using":[378],"CAPM":[381,417],"views":[383],"company":[385],"part":[387],"stocks.":[393],"making":[395],"this":[396],"argument,":[397],"article":[399],"reviews":[400],"growing":[402],"body":[403],"academic":[405],"studies":[406],"provide":[408],"evidence":[409],"predictive":[412],"power":[413],"reduction":[422],"premiums.":[426]},"counts_by_year":[{"year":2026,"cited_by_count":23},{"year":2025,"cited_by_count":32},{"year":2024,"cited_by_count":33},{"year":2023,"cited_by_count":30},{"year":2022,"cited_by_count":38},{"year":2021,"cited_by_count":35},{"year":2020,"cited_by_count":43},{"year":2019,"cited_by_count":44},{"year":2018,"cited_by_count":53},{"year":2017,"cited_by_count":61},{"year":2016,"cited_by_count":68},{"year":2015,"cited_by_count":67},{"year":2014,"cited_by_count":81},{"year":2013,"cited_by_count":65},{"year":2012,"cited_by_count":80}],"updated_date":"2026-11-07T11:25:07.637180","created_date":"2016-06-24T00:00:00"}