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...

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...

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...

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...

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...

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...

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...

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...