LAMBERT, RICHARD; LEUZ, CHRISTIAN; VERRECCHIA, ROBERT E. - In: Journal of Accounting Research 45 (2007) 2, pp. 385-420
<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>In this paper we examine whether and how accounting information about a firm manifests in its cost of capital, despite the forces of diversification. We build a model that is consistent with the Capital Asset Pricing Model and explicitly allows for multiple securities whose cash flows...
