기업의 지리적 위치가 자기자본조달비용에 미치는 영향

[Purpose] This study analyzes the impact of a firm's geographic location on its cost of equity capital. Additionally, it aims to examine the effect of the number of financial analysts on the firm's cost of equity capital. [Methodology] A regression analysis was conducted to examine the relationship between a firm's geographic location and its cost of equity capital using a sample of 5,286 firm－year observations from listed companies on the securities market, excluding those in the financial sector, from 2014 to 2021. [Findings] The empirical analysis revealed that the cost of equity capital is lower for firms located in Seoul, Gyeonggi, and Incheon, which are part of the metropolitan area. This reduction in the cost of equity capital was found to be more pronounced when the number of financial analysts monitoring the firm is higher. [Implications] The implications of this study are as follows. First, the geographic location of a firm is a crucial factor in its business activities, such as fundraising. Second, the findings provide policy insights for government authorities. To address the concentration of firms in the metropolitan area, it is suggested that the government increase tax incentives and subsidies for firms to relocate to regional areas and create an environment that facilitates smooth business operations in those regions.