Access the full text.
Sign up today, get DeepDyve free for 14 days.
Gebhardt Gebhardt, Lee Lee, Swaminathan Swaminathan (2001)
‘Towards an Ex‐ante Cost of Capital’Journal of Accounting Research, 39
Peter Easton, S. Monahan (2005)
An Evaluation of Accounting-Based Measures of Expected ReturnsThe Accounting Review, 80
Christine Botosan, Marlene Plumlee (2005)
Assessing Alternative Proxies for the Expected Risk PremiumAccounting review: A quarterly journal of the American Accounting Association, 80
H. Lin (1994)
Security analysts' investment recommendations
Hans Christensen, Edward Lee, M. Walker (2007)
Cross-sectional variation in the economic consequences of international accounting harmonization: The case of mandatory IFRS adoption in the UK ☆The International Journal of Accounting, 42
(2005)
Bias in Expected Rates of Return Implied by Analysts
Charles Lee, James Myers, B. Swaminathan (1997)
What is the Intrinsic Value of the DowSocial Science Research Network
Linda Krull, Oliver Li (2005)
Dividend Taxes and Implied Cost of Equity CapitalInstitutional & Transition Economics eJournal
(2001)
Equity Risk Premium as Low as Three Percent? Evidence from Analysts
Francis Francis, LaFond LaFond, Olsson Olsson, Schipper Schipper (2004)
‘Costs of Capital and Earnings Attributes’The Accounting Review, 79
James Claus, Jacob Thomas (2001)
Equity Premia as Low as Three Percent? Evidence from Analysts' Earnings Forecasts for Domestic and International Stock MarketsJournal of Finance, 56
Christine Botosan, Marlene Plumlee, Yuan Xie (2004)
The Role of Information Precision in Determining the Cost of Equity CapitalReview of Accounting Studies, 9
J. Groth, Wilbur Lewellen, Gary Schlarbaum, Ronald Lease (1978)
Security Analysts, 4
Christine Botosan (1997)
Disclosure level and the cost of equity capitalAccounting review: A quarterly journal of the American Accounting Association, 72
Lee Lee, Myers Myers, Swaminathan Swaminathan (1999)
‘What is the Intrinsic Value of the Dow?’Journal of Finance, 54
William Gebhardt, Charles Lee, B. Swaminathan (1999)
Toward an Ex Ante Cost-of-CapitalChicago Booth Research Paper Series
Luzi Hail, C. Leuz
The Rodney L. White Center for Financial Research International Differences in the Cost of Equity Capital: Do Legal Institutions and Securities Regulation Matter?
Daske Daske (2006)
‘Economic Benefits of Adopting IFRS or US‐GAAP – Have the Expected Costs of Equity Capital Really Decreased?’Journal of Business, Finance, & Accounting, 33
Dan Gode, Partha Mohanram (2003)
Inferring the Cost of Capital Using the Ohlson–Juettner ModelReview of Accounting Studies, 8
Holger Daske (2006)
Economic Benefits of Adopting IFRS or Usgaap - Has the Expected Cost of Equity Capital Really Decreased?European Finance
D. Dhaliwal, Linda Krull, Oliver Li, William Moser (2003)
Dividend Taxes and Implied Cost of CapitalFinancial Accounting eJournal
J. O'Hanlon, A. Steele (2000)
Estimating the Equity Risk Premium Using Accounting FundamentalsJournal of Business Finance & Accounting, 27
Easton Easton (2004)
‘PE Ratios, PEG Ratios, and Estimating the Implied Expected Rate of Return on Equity Capital’The Accounting Review, 79
J. Francis, Ryan LaFond, Per Olsson, K. Schipper (2003)
Costs of Capital and Earnings AttributesS&P Global Market Intelligence Research Paper Series
Claus Claus, Thomas Thomas (2001)
‘Equity Risk Premium as Low as Three Percent? Evidence from Analysts’ Earnings Forecasts for Domestic and International Stocks’Journal of Finance, 56
Michael Williams (2004)
Discussion of “The Role of Information Precision in Determining Cost of Equity Capital”Review of Accounting Studies, 9
P. Hribar, N. Jenkins (2003)
The Effect of Accounting Restatements on Earnings Revisions and the Estimated Cost of CapitalReview of Accounting Studies, 9
William Gebhardt, Charles Lee, B. Swaminathan (2000)
Toward an Implied Cost of CapitalCorporate Finance and Organizations eJournal
(2005)
This point is at the heart of the analyses in Easton and Sommers
Stephen Baginski, James Wahlen (2003)
Residual Income Risk, Intrinsic Values, and Share PricesAccounting review: A quarterly journal of the American Accounting Association, 78
J. Francis, Ryan LaFond, Per Olsson, K. Schipper (2004)
Costs of Equity and Earnings AttributesThe Accounting Review, 79
All methods that rely on market prices must admit the caveat that the resulting estimates of the cost of capital will be biased estimates if the prices are inefficient
Jere Francis, Inder Khurana, Raynolde Pereira (2005)
Disclosure Incentives and Effects on Cost of Capital around the WorldAccounting review: A quarterly journal of the American Accounting Association, 80
Peter Easton (2003)
Pe Ratios, Peg Ratios, and Estimating the Implied Expected Rate of Return on Equity CapitalCapital Markets: Asset Pricing & Valuation eJournal
Peter Easton (2001)
Discussion of: “When Capital Follows Profitability: Non-linear Residual Income Dynamics”Review of Accounting Studies, 6
Scott Richardson, S. Teoh, Peter Wysocki (1999)
Tracking Analysts' Forecasts Over the Annual Earnings Horizon: Are Analysts' Forecasts Optimistic or Pessimistic?Behavioral & Experimental Finance
The adjusted r-square from this regression is 0
Dhaliwal Dhaliwal, Krull Krull, Li Li, Moser Moser (2005)
‘Dividend Taxes and Implied Cost of Capital’Journal of Accounting Research, 43
(1989)
‘ Accounting Earnings , Book Value and Dividends : The Theory of the Clean Surplus Equation ( Part I ) , Reproduced in R . Brief and K . Peasnell
W. Guay, S. Kothari, Susan Shu (2011)
Properties of implied cost of capital using analysts’ forecastsAustralian Journal of Management, 36
E. Fama, K. French (1997)
Industry costs of equityJournal of Financial Economics, 43
Nilabhra Bhattacharya, E. Black, Theodore Christensen, Chad Larson (2003)
Assessing the Relative Informativeness and Permanence of Pro Forma Earnings and GAAP Operating EarningsJournal of Accounting and Economics, 36
(1993)
Earnings Forecasts and the Macroeconomy’, Working Paper (University of Michigan)
Peter Easton, Gary Taylor, Pervin Shroff, Theodore Sougiannis (2002)
Using forecasts of earnings to simultaneously estimate growth and the rate of return on equity investmentJournal of Accounting Research, 40
Abstract: I critically examine several of the methods used in the recent literature to estimate and compare the cost of capital across different accounting/regulatory regimes. I focus on the central importance of expectations of growth beyond the short period for which forecasts of future pay‐offs (dividends and/or earnings) are available. I illustrate, using the stocks that comprised the Dow Jones Industrial Average (DJIA) at December 31, 2004, as an example, the differences between the growth rates implied by the data, and growth rates that are often assumed in the literature. My analyses show that assumptions about growth beyond the (short) forecast horizon may seriously affect the estimates of the expected rate of return and may lead to spurious inferences.
Journal of Business Finance & Accounting – Wiley
Published: Apr 1, 2006
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.