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Klabat Journal of ManagementKlabat Journal of Management

This study explores the evolving landscape of cost of capital research through a bibliometric analysis and literature review. Examining publications from the Scopus database, the research identifies significant trends in scholarly output and country contributions over the past two decades. The bibliometric analysis reveals key thematic clusters, such as investment, risk, and capital structure, and highlights shifts in popular keywords over time. Concurrently, a comprehensive literature review synthesizes findings on the crucial importance of the cost of capital for business performance, sustainability, and competitive advantage. It also elucidates various strategies and solutions for its effective management and improvement. The study provides insights into the practical implications of optimizing the cost of capital for businesses and organizations, contributing to a holistic understanding of its role in financial decision-making.

The study reveals a significant and sustained increase in research on the cost of capital over the past two decades, with contributions primarily from North America and Europe.The thematic analysis indicates an evolution towards a more integrated approach, incorporating governance, sustainability, and market dynamics.These findings underscore the importance of optimizing the cost of capital through robust governance, efficient operations, and a strategic focus on long-term value creation.

Further research could investigate the specific impact of ESG factors on the cost of capital across different industries and geographical regions, moving beyond correlation to establish causal relationships. Additionally, exploring the role of behavioral finance in influencing capital structure decisions and the resulting cost of capital could provide valuable insights into investor psychology and market anomalies. Finally, a longitudinal study tracking the evolution of the cost of capital for firms adopting innovative financing models, such as green bonds or crowdfunding, would contribute to a better understanding of the long-term sustainability and financial viability of these approaches. These investigations should consider the interplay between macroeconomic conditions, regulatory frameworks, and firm-specific characteristics to provide a nuanced and comprehensive understanding of the cost of capital in a rapidly changing global landscape, ultimately informing more effective financial strategies for businesses and policymakers alike.

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  2. Vol. 4 No. 2 (2023): Klabat Journal of Management | Klabat Journal of Management. vol klabat journal... doi.org/10.60090/kjm.v4i2Vol 4 No 2 2023 Klabat Journal of Management Klabat Journal of Management vol klabat journal doi 10 60090 kjm v4i2
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