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...

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...

In this study, we estimate the expected cost of equity capital using the unrestricted form of the classic dividend discount formula and examine the extent to which these estimates (rDIV ) reliably proxy for expected cost of equity capital. We find that the rDIV estimates are associated with six...

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...

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...

This commentary proposes an approach to asset measurement rooted in business valuation theory and practice. In the context of a business valuation, investors' information needs and the asset measurement investors find useful vary with the manner in which the assets are expected to realize value...

The paper reviews the purpose, structure, and historical development of a conceptual framework for financial reporting. It then demonstrates the deduction of integrated measurement and presentation principles from a proposed underlying structure comprised of the objective of financial reporting...

The Financial Reporting Policy Committee of the Financial Accounting and Reporting Section of the American Accounting Association responded to the SEC's July 13, 2007 proposal to accept financial statements prepared in accordance with International Financial Reporting Standards (IFRS) from...

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...