In this paper, we examine the effect of relative/absolute firm efficiency on weighted average cost of capital (WACC). Using a sample of Korean listed firms, we find that WACC is negatively associated with relative firm efficiency (operational performance) suggesting that firms with higher (lower) relatively efficiency are expected to pay lower (higher) capital costs. When we repeat our analysis using absolute firm efficiency (ROA), we do not find a statistically significant relationship. Our results suggest relative efficiency which is estimated as output (sales) divided by the resources that are directly under the control of management is assessed by capital providers and impounded into a firm’s capital costs. Absolute efficiency (ROA) which is estimated as sales divided by total assets is not. Our results suggest that simple accounting ratios used in the accounting literature are not considered as informative to explain borrowing costs compared to relative efficiency that captures managerial operational performance.

在本文中，我们研究了相对/绝对公司效率对加权平均资本成本 (WACC) 的影响。使用韩国上市公司的样本，我们发现 WACC 与相对公司效率（运营绩效）呈负相关，这表明具有较高（较低）相对效率的公司预计支付较低（较高）的资本成本。当我们使用绝对公司效率 (ROA) 重复我们的分析时，我们没有发现统计上的显着关系。我们的结果表明，相对效率估计为产出（销售）除以直接受管理层控制的资源，由资本提供者评估并计入公司的资本成本。绝对效率 (ROA) 估计为销售额除以总资产。