Empirical studies of firms in Norway and Sweden show that as shareholder equity rights increased,the margin between ROA and cost of capital also increased.

Question

Quizplus · Accepted Answer

The statement is true, as empirical studies conducted in Norway and Sweden have shown a positive correlation between increasing shareholder equity rights and an increasing margin between return on assets (ROA) and the cost of capital.

Empirical Studies of Firms in Norway and Sweden Show That