Asset pricing theory notes that different types of investor uncertainty can have directionally different effects on cost of equity. Empirical studies of costs of equity, however, generally assume that different types of uncertainty are independent or have the same directional effect. We relax...

There are several explanations for why accruals persist into earnings at lower rates than cash flows. These include that accruals contain estimation error, diminishing returns to investment, and product-markets shocks. We predict that the mixed attribute GAAP measurement model along with the...