...Huaibing Yu; Jie Deng Purpose This study investigates the pricing of stock price crash risk in firms’ ex ante cost of equity capital. Design/methodology/approach A large sample of firms is constructed, and a multivariate regression model is specified to empirically examine the pricing...

... that Brazilian firms take advantage of windows of opportunity to obtain financing, and that when the cost of equity capital is high, firms appear to follow a pecking order, giving preference to debt financing. However, the decision is based on the cost of alternative sources of funding rather than just...