Previous research shows that analysts' forecasts of earnings do not fully incorporate information contained in reported earnings variability. This study investigates whether the inefficient forecasting is due to a failure to incorporate observable information on two components of earnings...

We evaluate the influence of measurement error in analysts' forecasts on the accuracy of implied cost of capital estimates from various implementations of the ‘implied cost of capital' approach, and develop corrections for the measurement error. The implied cost of capital approach relies on...

We evaluate the influence of measurement error in analysts' forecasts on the accuracy of implied cost of capital estimates from various implementations of the ‘implied cost of capital' approach, and develop corrections for the measurement error. We document predictable error in the implied...