ABSTRACT

Despite its importance, research on equity cost as a means of strategic decision making and performance measurement on the investment of domestic listed logistics companies is poor. The purpose of this study is to present the information and implications for logistics service providers and equity investors who invest in these companies by estimating the cost of equity capital of major logistics companies and analyzing their performance. To this, we propose a CAPM, a three-factor model of Fama-French, and an arbitrage pricing model based on capital asset pricing theory. And from March 2015 to March 2018, each individual company's stock returns, KOSPI returns, 3-year government bonds, size premium factor, value premium factor, momentum factor, corporate bond yield factor and transportation index apply to each model to derive the analysis results. 1) The remaining models except CAPM showed that there is a limit to explain the excess return of trucking business company. 2) It can be seen that the economic factors may function differently depending on the distribution of excess return by trucking business company. 3) The CAPM estimates of cost of equity capital have negative (-) returns during the analysis period. We expect that the results of this analysis will provide investors with relevant information and implications.

KEYWORD

Logistics service providers, Cost of equity capital, CAPM, Fama-French 3 Factor model, Arbitrage pricing theory.

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