Download or read book Comparability and Cost of Equity Capital written by Michael Imhof and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate how the comparability of a company's financial statements is related to its cost of equity capital. Financial Accounting Standards Board's (FASB) Concept Statement No. 8 proposes that comparability is a key tenet of accounting because it allows users of financial statements to benchmark a firm against similar firms when distinguishing between alternative investment opportunities. We provide evidence that greater financial statement comparability is associated with lower cost of equity capital, and show that comparability's effect on cost of equity remains after controlling for within-firm accounting quality. Additionally, we find that investors derive greater benefits from financial statement comparability in firms whose information environments are less transparent (high information asymmetry) and whose equity shares trade in markets that are less competitive (imperfect markets). Our findings contribute to accounting research by providing evidence justifying comparability as a separate element of the FASB's conceptual framework.
Download or read book The Cost of Equity Capital written by William R. Purvis and published by . This book was released on 1973 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effect of Exchange listing on a Firm s Cost of Equity Capital written by Dan S. Dhaliwal and published by . This book was released on 1980 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Cross border Valuation written by Gordon M. Bodnar and published by . This book was released on 2003 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt: "How does a firm in one country evaluate an investment in a firm in another country, or how does it evaluate a foreign project that the firm itself is undertaking? The firm must estimate future free cash flows just as in a domestic project, but choosing an appropriate discount rate is a particular challenge. This study examines the determinants of the discount rate for an international acquisition or project by examining the sources of risk in an international setting. These risks include stock-market price risk measured with various versions of the capital asset pricing model, as well as exchange rate risk and political risk. To measure stock market risk, both segmented and integrated models of the world equity markets are considered. The emphasis of the study is on some of the practical aspects of estimation, particular for markets where no comparable investments exist on which to base estimates of risk premiums. To show how each of these risks might be measured, the study reports estimates for a representative French firm, Thals. The estimates range widely depending on whether or not the equity market is globally integrated"--NBER website
Download or read book Estimating the Cost of Equity Capital for a Division of a Firm written by and published by . This book was released on 1989 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Impact of Improved Financial Disclosure on the Cost of Equity Capital written by Dan Singh Dhaliwal and published by . This book was released on 1980 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Illiquidity and the Cost of Equity Capital written by Amit Goyal and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Valuation of Common Stock and the Cost of Equity Capital written by John Gregory McDonald and published by . This book was released on 1967 with total page 208 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Estimating the Cost of Equity Capital Using Time Series Analysis written by Howard Elliott Thompson and published by . This book was released on 1983 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Cross Border Valuation written by Gordon M. Bodnar and published by . This book was released on 2010 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: How does a firm in one country evaluate an investment in a firm in another country, or how does it evaluate a foreign project that the firm itself is undertaking? The firm must estimate future free cash flows just as in a domestic project, but choosing an appropriate discount rate is a particular challenge. This study examines the determinants of the discount rate for an international acquisition or project by examining the sources of risk in an international setting. These risks include stock-market price risk measured with various versions of the capital asset pricing model, as well as exchange rate risk and political risk. To measure stock market risk, both segmented and integrated models of the world equity markets are considered. The emphasis of the study is on some of the practical aspects of estimation, particular for markets where no comparable investments exist on which to base estimates of risk premiums. To show how each of these risks might be measured, the study reports estimates for a representative French firm, Thals. The estimates range widely depending on whether or not the equity market is globally integrated.
Download or read book Accounting Standards and Their Effect on the Expected Cost of Equity Capital written by María T. Cabán-García and published by . This book was released on 2006 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Implied Cost of Equity Capital of Family Firms written by Maximilian Vait Vollenbroich and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Earnings Surprises and the Cost of Equity Capital written by Michael B. Mikhail and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Controlling for other determinants of the cost of capital, we find that firms with repeated large earnings surprises experience a higher cost of equity capital. This finding holds regardless of the sign of the earnings surprises, but firms that consistently report negative surprises have relatively higher cost of equity capital. Although firms that frequently surprise the market experience a decrease in analyst following relative to no surprise firms, this reduction in monitoring cannot account for the higher cost of equity capital. Overall, these findings document that repeated earnings surprises are costly, and provide evidence that managers have incentives to avoid missing earnings targets.
Download or read book Index Revisions Market Quality and the Cost of Equity Capital written by Wael Hamdi Aldaya and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Economic Concentration and the Cost of Equity Capital written by Alan Richard Schriber and published by . This book was released on 1976 with total page 149 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Cost of Equity Capital and Model Mispricing written by Lubos Pástor and published by . This book was released on 1998 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Estimating Firms Expected Cost of Equity Capital written by Jan A. Kempkes and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
