Download or read book Does Graph Disclosure Bias Reduce the Cost of Equity Capital written by Flora Muiño and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Firms widely use graphs in their financial reports. In this respect, prior research demonstrates that companies use graphs to provide a favorable outlook of performance, suggesting that they try to manage the impression created in users' perceptions. This study tests whether by means of distorted graphs managers are able to influence users' decisions in the capital market. By focusing on the effects of distorted graphs on the cost of equity capital, we provide preliminary evidence on one of the possible economic consequences of graph usage. The results of this investigation suggest that graph disclosure bias has a significant, but temporary, effect on the cost of equity. Moreover, our results highlight the important role played by the overall level of disclosure as a conditioning factor in the relationship between graphs and the cost of equity. Consequently, the results of the current study enhance our understanding of the complex interactions that take place in the stock market between information, information intermediaries and investors.

Download or read book Disclosure Analyst Forecast Bias and the Cost of Equity Capital written by and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: PhD.

Download or read book Handbook of Research on Healthcare Standards Policies and Reform written by Comite, Ubaldo and published by IGI Global. This book was released on 2022-04-08 with total page 408 pages. Available in PDF, EPUB and Kindle. Book excerpt: The healthcare industry has been the center of attention recently as it continues to have a major impact on private and public organizations, government institutions, and consumers. An increasing number of requests for healthcare has led to the implementation of new policies and reform proposals that are challenging as they can have a simultaneous impact on different categories of users. As many health, individual, and organizational activities continue to grow and are conducted in the general environment, new vulnerabilities have emerged that have led to the need to study the system from a different angle. The nature, source, and complexity of healthcare is not always clear, and many times health issues are underestimated. The Handbook of Research on Healthcare Standards, Policies, and Reform examines the complex issues, various problems, and innovative solutions that are linked to healthcare standards, policies, and reform. This comprehensive reference work provides important knowledge that impacts healthcare improvement from the perspective of multiple disciplines, adding innovation value to solving health issues. Covering topics such as health protection, psychological health, and healthcare technology, it is an essential resource for academicians, healthcare practitioners, researchers, healthcare scientists, professional bodies, professors and students of higher education, and policymakers.

Download or read book PRICE AND VALUATION written by Nicholas Jewczyn, Ph.D. and published by AuthorHouse. This book was released on 2013-12-23 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is my doctoral dissertation. It has been published here because many people have the desire to read an old-fashioned book and enjoy turning the pages to digest the information at a comfortable rate. The original idea for this study, as many of my graduate students already know, came from a lecture by a previous graduate school professor of mine. His parable concerned a famous baseball coach who was really hungry after a baseball game and decided, because he was more hungry than usual, to slice the post-game pizza into eight slices instead of just four. If you understand why that is funny, then you have a good head start on the road to understanding the concept of true valuation. In the Field of Economics, concerning the long-term, price is the ultimate arbiter. When we couple price with non-traditional, relative valuation, whether it's pizza, a corporate entity for purchase for billions of dollars, or just the price of one share of stock, we get a better understanding of what something is actually worth. Therefore, we understand very quickly whether or not we are getting a "good deal" for the price paid. If you are not a rocket-scientist, but want a step-by-step and thorough understanding of what things are really worth - this book is for you.

Download or read book Business Challenges in the Changing Economic Landscape Vol 1 written by Mehmet Huseyin Bilgin and published by Springer. This book was released on 2015-10-29 with total page 520 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is the first of the two volumes featuring selected articles from the 14th Eurasia Business and Economics conference held in Barcelona, Spain, in October 2014. Peer-reviewed articles in this first volume present latest research breakthroughs in the areas of Accounting, Corporate Governance, Finance and Banking, Institutional and International Economics, and Regional Studies. The contributors are both distinguished and young scholars from different parts of the World.

Download or read book Business Innovation and Development in Emerging Economies written by Irwan Trinugroho and published by CRC Press. This book was released on 2019-05-16 with total page 700 pages. Available in PDF, EPUB and Kindle. Book excerpt: Business Innovation driven by the advancement of technology has dramatically changed the business landscape over recent years, not only in advanced countries but also in emerging markets. It is expected that business innovation could help achieve economic inclusion, which has been a global initiative over the last decade, creating opportunities for all people to benefit from the economic development. These proceedings provide an outlet for discussing the importance of business innovation, especially in emerging countries in helping to reach inclusive economies. The papers cover the subject areas management, accounting, finance, economics and social sciences.

Download or read book Bank Performance Risk and Securitisation written by Joseph Falzon and published by Springer. This book was released on 2013-10-24 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: The latest scholarly developments in research on banking, financial markets, and the recent financial crisis. This selection of papers were presented at the Wolpertinger Conference held in Valletta, Malta, 2012 and provide insights into bank performance, banking risk, securitisation, bank stability, sovereign debt and derivatives.

Download or read book Advances in Financial Risk Management written by Jonathan A. Batten and published by Springer. This book was released on 2015-12-04 with total page 434 pages. Available in PDF, EPUB and Kindle. Book excerpt: The latest research on measuring, managing and pricing financial risk. Three broad perspectives are considered: financial risk in non-financial corporations; in financial intermediaries such as banks; and finally within the context of a portfolio of securities of different credit quality and marketability.

Download or read book The Impact of Intellectual Capital Disclosure on Cost of Equity Capital written by Mohamed Ali Boujelbene and published by . This book was released on 2013 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this paper is to examine empirically the impact of intellectual capital disclosure (IC) on cost of Equity capital. The empirical research is based on companies listed in the French SBF 120 stock market index. The findings confirm our hypotheses that stipulate the existence of a significant and negative association between intellectual capital disclosure with its two components (human capital, structural) and the cost of equity. However, the negative impact of the relational capital disclosure is not validated. The results in this paper are of considerable importance to both policy makers and firms. In fact, the understanding of the impact of Intellectual capital disclosure on cost of equity capital helps policy makers in the evaluation of the costs and benefits of disclosure. Moreover, with regard to managers of firms, the results show the benefit of enhanced IC disclosure regarding the reduction in their cost of capital. This study is one of the very first to provide empirical evidence of the association between Cost of equity capital and the level of disclosure in the three individual intellectual capital categories (human; structural and relational capital).

Download or read book Regulation Fair Disclosure and the Cost of Equity Capital written by Dan S. Dhaliwal and published by . This book was released on 2006 with total page 55 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the effect of Regulation Fair Disclosure (Reg FD) on the cost of equity capital. We find some evidence that (1) the cost of capital declines in the post-Reg FD period relative to the pre-Reg FD period, on average, for a broad cross-section of U.S. firms, (2) the decrease in the cost of capital post Reg FD is mainly for medium and large firms but is insignificant for small firms, and (3) the decrease in the cost of capital post Reg FD is systematically related to firm characteristics indicative of selective disclosure before Reg FD. In contrast, we find little evidence of a decrease in the cost of capital for American Depositary Receipts and U.S.-listed foreign firms, which are legally exempt from Reg FD. Overall, our findings do not support a conclusion in recent studies that the cost of capital has increased post Reg FD and, if anything, suggest the opposite.

Download or read book CONSERVATISM THE COST OF EQUITY CAPITAL AN INFORMATION PERSPECTIVE written by and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The bias implied by conservatism in accounting and its impact on information risk in equity markets is the subject of considerable debate. On one hand, opponents of conservatism believe that any kind of biased information is actually misinformation and thus increases uncertainty. Perhaps most prominent among opponents of conservatism is the Financial Accounting Standards Board (FASB). The FASB contends that accounting information should be neutralfree from bias; a bias in favor of reporting either good or bad news is inconsistent with representational faithfulness and neutrality. On the other hand, proponents of conservatism point to incentives of management to manipulate financial statements by exaggerating apparent good news and/or hiding apparent bad news. Proponents argue that the bias implied by conservatism is necessary to offset the asymmetric reporting incentives of the firms management, and in so doing, conservatism allegedly improves information quality and reduces information risk. Finally, results of at least one recent study do not favor either position, suggesting that conservatism has no effect on information quality in equity market. This study finds that the bias implied by conservatism (bias in favor of reporting bad news) increases information risk in equity markets and consequently the cost of equity capital. Findings further indicate that sufficiently aggressive bias also increases information risk. That is, the markets most aggressive firms, those reporting with a bias opposite that implied by conservatism, can reduce information risk by moving toward more neutral, unbiased reporting. Furthermore, the general effects of biased reporting (increased information risk) are consistent across all levels of information asymmetry among equity investors. These findings are interpreted as supporting the position of the FASB that biased accounting information increases information risk.

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 Information Asymmetry Segment Disclosures and Cost of Equity Capital written by Jagjit Singh Saini and published by . This book was released on 2010 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study extends the value-relevance research on the association between the cost of equity capital and the level of segment disclosures. Using the ex ante measures of the cost of equity capital and a hand-developed index measure of the level of segment disclosures, this study finds that the theoretical negative association between the cost of equity capital and the level of segment disclosures is increasing in the existing probability of informed trade. This study also finds mixed evidence in support of the contention that the negative association between the cost of equity capital and the level of segment disclosures is increasing (decreasing) in the absence (presence) of managerial blockholdings. Further, the increasing effect of probability of informed trade dominates the decreasing effect of the presence of managerial blockholdings. Overall, evidence suggests that the negative association between the cost of equity capital and the level of segment disclosures is increasing in the probability of informed trade and absence of managerial blockholdings.

Download or read book Investor Relation Internet Disclosure and the Cost of Equity Capital written by Ewa A. Froidevaux and published by . This book was released on 2004 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Implied Cost of Equity Capital and Analysts Forecast Bias written by Gorm Kristensen and published by . This book was released on 2010 with total page 89 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Earnings Quality written by Jennifer Francis and published by Now Publishers Inc. This book was released on 2008 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt: This review lays out a research perspective on earnings quality. We provide an overview of alternative definitions and measures of earnings quality and a discussion of research design choices encountered in earnings quality research. Throughout, we focus on a capital markets setting, as opposed, for example, to a contracting or stewardship setting. Our reason for this choice stems from the view that the capital market uses of accounting information are fundamental, in the sense of providing a basis for other uses, such as stewardship. Because resource allocations are ex ante decisions while contracting/stewardship assessments are ex post evaluations of outcomes, evidence on whether, how and to what degree earnings quality influences capital market resource allocation decisions is fundamental to understanding why and how accounting matters to investors and others, including those charged with stewardship responsibilities. Demonstrating a link between earnings quality and, for example, the costs of equity and debt capital implies a basic economic role in capital allocation decisions for accounting information; this role has only recently been documented in the accounting literature. We focus on how the precision of financial information in capturing one or more underlying valuation-relevant constructs affects the assessment and use of that information by capital market participants. We emphasize that the choice of constructs to be measured is typically contextual. Our main focus is on the precision of earnings, which we view as a summary indicator of the overall quality of financial reporting. Our intent in discussing research that evaluates the capital market effects of earnings quality is both to stimulate further research in this area and to encourage research on related topics, including, for example, the role of earnings quality in contracting and stewardship.

Download or read book Valuation Approaches and Metrics written by Aswath Damodaran and published by Now Publishers Inc. This book was released on 2005 with total page 102 pages. Available in PDF, EPUB and Kindle. Book excerpt: Valuation lies at the heart of much of what we do in finance, whether it is the study of market efficiency and questions about corporate governance or the comparison of different investment decision rules in capital budgeting. In this paper, we consider the theory and evidence on valuation approaches. We begin by surveying the literature on discounted cash flow valuation models, ranging from the first mentions of the dividend discount model to value stocks to the use of excess return models in more recent years. In the second part of the paper, we examine relative valuation models and, in particular, the use of multiples and comparables in valuation and evaluate whether relative valuation models yield more or less precise estimates of value than discounted cash flow models. In the final part of the paper, we set the stage for further research in valuation by noting the estimation challenges we face as companies globalize and become exposed to risk in multiple countries.