Purpose – The purpose of this paper is to investigate the effects of class action litigation on firms' cost of equity capital. Design/methodology/approach – The paper uses three different models to estimate the cost of equity capital. To separate the impact of lawsuit filings on the cost of...

Purpose The purpose of this paper is to examine how a firm’s investment behavior relates to its subsequent bank loan contracting. Design/methodology/approach Using a sample of US firms during the period 1992-2011, the authors examine the association between overinvestment (underinvestment) and...

Outlines previous research on the relationship between stock returns and earnings and investigates the effects of divergence between security analysts’ earnings forecasts on this relationship. Uses cross‐sectional analysis, time series and variable parameter models on 1981‐88 US data to...