Evidence map›Paper›PMID 40276493›Full record

ArticleFrontiers in artificial intelligence2025

Explainable machine learning to predict the cost of capital.

Niklas Bussmann, Paolo Giudici, Alessandra Tanda, Ellen Pei-Yi Yu

Abstract read
In one paragraph

Article in Frontiers in artificial intelligence, 2025. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Cited by 6 papers.

0numbers the graph read from it
0cells of the map it votes in
6citing papers in PubMed
–field-weighted citation impact
1 · What the graph read from it

What it found

Each row is one number read from the abstract, on the scale the paper reported it, with its interval. Left of the dashed line favours the treatment, right favours the comparator. Under each row is the sentence it came from. New to these charts? A ten-minute tutorial.

The abstract states no effect estimate the extractor could read, or names no intervention and outcome on the map, so this paper lights no cell and moves no belief. It is still indexed, cited and linked below.

2 · The registry

The trial behind it

Trials whose registry record cites this paper, or whose number appears in the abstract. A trial that started after this paper was published is citing it as background, not reporting it.

Neither the registry nor the abstract names a trial number. If this is a trial report, that itself is worth knowing.

3 · Its place in the literature

Who cites it

6 citing papers in PubMed.

  1. Article
  2. Article
  3. Article
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  5. Predicting BRICS NIFTY50 returns using XAI and S.A.F.E AI lens.Frontiers in artificial intelligence · 2025
    Article
  6. Article
4 · The record

Corrections and comments

PubMed lists nothing against this paper. Absence here is not a guarantee, only a check that was made.

5 · Who and what money

Authors and funding

4 authors.

Niklas BussmannDepartment of Economics and Management, University of Pavia, Pavia, Italy.
Paolo GiudiciDepartment of Economics and Management, University of Pavia, Pavia, Italy.
Alessandra TandaDepartment of Economics and Management, University of Pavia, Pavia, Italy.
Ellen Pei-Yi YuDepartment of Management, Birkbeck College, University of London, London, United Kingdom.

Funding

No grant is acknowledged in the PubMed record.

6 · The paper itself

Abstract

This study investigates the impact of financial and non-financial factors on a firm's ex-ante cost of capital, which is the reflection of investors' perception on a firm's riskiness. Departing from previous literature, we apply the XGBoost algorithm and two explainable Artificial Intelligence methods, namely the Shapley value approach and Lorenz Model Selection to a sample of more than 1,400 listed companies worldwide. Results confirm the relevance of key financial indicators such as firm size, ROE, firm portfolio risk, but also individuate firm's non-financial features and country's institutional quality as relevant predictors for the cost of capital. These results suggest the importance of non-financial indicators and country institutional quality on the firm's ex-ante cost of equity that expresses investors' risk perception. Our findings pave the way for future investigations on the impact of ESG and country factors in predicting the cost of capital.

Indexed as

cost of capitalexplainable AInon-financial disclosureShapley ValuesXGBoost models

Identifiers

PMID40276493
PMCPMC12018374

What OpenQuestion holds

Textmetadata
LicenceCC BY
Read underepoch 390

Registered trials

None linked

Read under generation 80e0d062 · epoch 390. Bibliography from PubMed, PubMed Central and OpenAlex; grants from NIH RePORTER; trial links from ClinicalTrials.gov; estimates, votes and beliefs from the OpenQuestion graph.