Easley and O'Hara 2004 (EO) and Lambert, Leuz, and Verrecchia 2006 (LLV) model the links between information attributes and cost of capital. We explore how differences in the authors' interpretations of their models and their assumptions lead to different predictions, and we examine the relation...

Managers, investors and researchers have a compelling interest in identifying a reliable empirical proxy for firm-specific cost of equity capital (r). In theory, deducing r is possible if the market's future cash flow forecast and current stock price are observable. Practically, deducing r is...

Many research questions of interest to the accounting community cannot be adequately addressed in the absence a valid proxy for expected cost of equity capital. As quot;truequot; r is inherently unobservable, the ability of empirical research in this area to produce useful inferences depends on...

This paper examines the association between expected cost of equity capital and three types of disclosure (annual report, quarterly and other published reports, and investor relations). Our sample consists of 3,620 firm/year observations with Value Line data, which are also included in the...

This paper examines the association between expected cost of equity capital and three types of disclosure (annual report, quarterly and other published reports, and investor relations). Our sample consists of 3,620 firm-year observations with Value Line data, which are also included in the...

Existing literature employs two approaches to assess the validity of alternative proxies for firm-specific cost of equity capital. One approach relies on the theoretical link between future realized returns and cost of equity capital, while the second approach relies on the theoretical link...

We examine the determinants and effects of managers' decisions to increase segment disclosure frequency. Our sample consists of 107 multi-segment firms reporting industry segment data in their annual reports between 1987 and 1994. Of these 65 quot;changequot; firms initiated quarterly segment...

A lower cost of equity capital is believed by some to be a benefit of greater voluntary disclosure. I examine this association by regressing cost of capital on beta firm size and a self-constructed disclosure index based on the level of voluntary disclosure provided by 122 manufacturing firms in...

In this study, we examine the association between regulation and the disclosure practices and equity market liquidity of 156 non-U.S. firms with equity traded in the U.S. during calendar years 1994 and 1995. Of these firms, 68 have equities traded on the OTC Bulletin Board (OTCBB) and are exempt...

Using a sample of multisegment firms, we investigate firms' decisions to provide timely disclosure of segment sales and/or profits. Of our sample of 278 firms, 156 disclose segment sales and profits, 44 provide only segment sales, and 78 provide no segment data in their quarterly reports. We...