Access the full text.
Sign up today, get DeepDyve free for 14 days.
R. Merton (1987)
Presidential Address: A simple model of capital market equilibrium with incomplete information
La Porta La Porta, Lopez‐de‐Silanes Lopez‐de‐Silanes, Schleifer Schleifer, Vishny Vishny (2000a)
“Investor Protection and Corporate Governance.”Journal of Financial Economics, 58
Campbell Harvey (1991)
The World Price of Covariance RiskJournal of Finance, 46
Merton Merton (1987)
“A Simple Model of Capital Market Equilibrium with Incomplete Information.”Journal of Finance, 42
M. Greenstone, Annette Vissing-Jorgensen, Paul Oyer (2005)
Mandated Disclosure, Stock Returns, and the 1964 Securities Acts AmendmentsCorporate Law: Securities Law
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
La Porta La Porta, Lopez‐de‐Silanes Lopez‐de‐Silanes, Schleifer Schleifer, Vishny Vishny (1997)
“Legal Determinants of External Finance.”Journal of Finance, 52
Utpal Bhattacharya, H. Daouk (2002)
The World Price of Insider TradingJournal of Financial Abstracts eJournal
J. Coles, Uri Loewenstein, José Suay (1995)
On Equilibrium Pricing under Parameter UncertaintyJournal of Financial and Quantitative Analysis, 30
Bekaert Bekaert, Harvey Harvey (2000)
“Foreign Speculators and Emerging Equity Markets.”The Journal of Finance, 55
W. Ferson, Campbell Harvey (1996)
Fundamental Determinants of National Equity Market Returns: A Perspective on Conditional Asset PricingInternational Finance
Greenstone Greenstone, Oyer Oyer, Vissing‐Jorgensen Vissing‐Jorgensen (2005)
“Mandated Disclosure, Stock Returns, and the 1964 Securities Acts Amendments.”Quarterly Journal of Economics
G. Benston (1973)
Required Disclosure and the Stock Market: An Evaluation of the Securities Exchange Act of 1934The American Economic Review, 63
M. Obstfeld (1992)
Risk-Taking, Global Diversification, and GrowthNBER Working Paper Series
Ferson Ferson, Harvey Harvey (1998)
“Fundamental Determinants of National Equity Market Returns: A Perspective on Conditional Asset Pricing.”Journal of Banking & Finance, 21
Verrecchia Verrecchia (2001)
“Essays on Disclosure.”Journal of Accounting & Economics, 32
Claude Erb, Campbell Harvey, Tadas Viskanta (1996)
Expected Returns and Volatility in 135 Countries, 22
Miller Miller (2002)
“Earnings Performance and Discretionary Disclosure.”Journal of Accounting Research, 40
Errunza Errunza, Miller Miller (2000)
“Market Segmentation and the Cost of Capital in International Equity Markets.”Journal of Financial and Quantitative Analysis, 35
R. Porta, Florencio Silanes, Andrei Shleifer, Robert Vishny (1999)
Investor Protection and Corporate ValuationChicago Booth: Fama-Miller Working Paper Series
James Ohlson (1995)
Earnings, Book Values, and Dividends in Equity Valuation*Contemporary Accounting Research, 11
R. Porta, Florencio Silanes, Andrei Shleifer, Robert Vishny (1999)
Investor Protection and Corporate GovernanceChicago Booth: Fama-Miller Working Paper Series
Claude Erb, Campbell Harvey, Tadas Viskanta (1996)
Political Risk, Economic Risk and Financial RiskRisk Management
Whitney Newey, K. West (1986)
A Simple, Positive Semi-Definite, Heteroskedasticity and Autocorrelationconsistent Covariance MatrixEconometrics eJournal
C. Leuz, Robert Verrecchia (1999)
The Economic Consequences of Increased DisclosureJournal of Accounting Abstracts
Ole‐Kristian Hope (2003)
Disclosure Practices, Enforcement of Accounting Standards and Analysts' Forecast Accuracy: An International StudyJournal of Accounting Research, 41
John Hughes, Jing Liu, Jun Liu (2004)
Information, Diversification, and Cost of CapitalFinancial Accounting eJournal
Bushman Bushman, Piotroski Piotroski, Smith Smith (2004)
“What Determines Corporate Transparency?”Journal of Accounting Research, 42
Levitt Levitt (1998)
“The Importance of High Quality Accounting Standards.”Accounting Horizons, 12
Harvey Harvey (1991)
“The World Price of Covariance Risk.”The Journal of Finance, 46
Richard Lambert, C. Leuz, Robert Verrecchia (2006)
Accounting Information, Disclosure, and the Cost of CapitalFinancial Accounting
J. Francis, Per Olsson, D. Oswald (2000)
Comparing the Accuracy and Explainability of Dividend, Free Cash Flow, and Abnormal Earnings Equity Value EstimatesJournal of Accounting Research, 38
Claude Erb, Campbell Harvey, Tadas Viskanta (2005)
Political Risk, Economic Risk, and Financial RiskFinancial Analysts Journal
Brian Bushee, C. Leuz (2004)
Economic Consequences of Sec Disclosure Regulation: Evidence from the OTC Bulletin BoardCapital Markets: Asset Pricing & Valuation
Bhattacharya Bhattacharya, Daouk Daouk (2002)
“The World Price of Insider Trading.”Journal of Finance, 57
R. Stulz (1981)
A model of international asset pricingJournal of Financial Economics, 9
Holger Daske, Gunther Gebhardt, Stefan Klein (2004)
Estimating a Firm's Expected Cost of Equity Capital Using Consensus ForecastsCorporate Finance: Capital Structure & Payout Policies
Dan Gode, Partha Mohanram (2003)
Inferring the Cost of Capital Using the Ohlson–Juettner ModelReview of Accounting Studies, 8
Campbell Harvey (2004)
Country Risk Components, the Cost of Capital, and Returns in Emerging MarketsEmerging Markets: Finance
Leuz Leuz, Nanda Nanda, Wysocki Wysocki (2003)
“Earnings Management and Investor Protection: An International Comparison.”Journal of Financial Economics, 69
William Gebhardt, Charles Lee, B. Swaminathan (2000)
Toward an Implied Cost of CapitalCorporate Finance and Organizations eJournal
Gregory Miller (1999)
Earnings Performance and Discretionary DisclosuresFinancial Accounting eJournal
Gebhardt Gebhardt, Lee Lee, Swaminathan Swaminathan (2001)
“Toward an Implied Cost of Capital.”Journal of Accounting Research, 39
Easley Easley, O'Hara O'Hara (2004)
“Information and the Cost of Capital.”Journal of Finance, 59
Daske Daske, Gebhardt Gebhardt, Klein Klein (2006)
“Estimating a Firm's Expected Cost of Equity Capital Using Consensus Forecasts.”Schmalenbach Business Review, 58
La Porta La Porta, Lopez‐de‐Silanes Lopez‐de‐Silanes, Schleifer Schleifer, Vishny Vishny (2002)
“Investor Protection and Corporate Valuation.”The Journal of Finance, 57
Bruno Solnik (1974)
An equilibrium model of the international capital marketJournal of Economic Theory, 8
E. Fama, K. French (1993)
Common risk factors in the returns on stocks and bondsJournal of Financial Economics, 33
Christine Botosan, Marlene Plumlee (2005)
Assessing Alternative Proxies for the Expected Risk PremiumAccounting review: A quarterly journal of the American Accounting Association, 80
Robert Bushman, Joseph Piotroski, Abbie Smith (2003)
What Determines Corporate Transparency?Economic Growth
Nathaniel Beck, Jonathan Katz (1995)
What To Do (and Not to Do) with Time-Series Cross-Section DataAmerican Political Science Review, 89
C. Leuz, D. Nanda, Peter Wysocki (2002)
Earnings Management and Investor Protection: An International ComparisonGlobal Business Issues eJournal
Holger Daske, Gunther Gebhardt, Stefan Klein (2006)
Estimating the Expected Cost of Equity Capital Using Analysts’ Consensus ForecastsSchmalenbach Business Review, 58
Sudipta Basu (1997)
The conservatism principle and the asymmetric timeliness of earningsJournal of Accounting and Economics, 24
G. Bekaert, Campbell Harvey (1997)
Foreign Speculators and Emerging Equity MarketsCapital Markets eJournal
Luzi Hail (2002)
The Impact of Voluntary Corporate Disclosures on the Ex Ante Cost of Capital for Swiss FirmsWharton School: Accounting (Topic)
Bushee (2005)
233Journal of Accounting & Economics, 39
Obstfeld Obstfeld (1994)
“Risk‐Taking, Global Diversification, and Growth.”American Economic Review, 84
R. Mclean (2001)
Market Segmentation and the Cost of Capital in International Equity MarketsCfa Digest, 31
Easton Easton (2004)
“PE Ratios, PEG Ratios, and Estimating the Implied Expected Rate of Return on Equity Capital.”The Accounting Review, 79
Benston (1973)
132The American Economic Review, 63
Peter Easton (2003)
Pe Ratios, Peg Ratios, and Estimating the Implied Expected Rate of Return on Equity CapitalCapital Markets: Asset Pricing & Valuation eJournal
Kevin Chen, K. Wei, Zhihong Chen (2003)
Disclosure, Corporate Governance, and the Cost of Equity Capital: Evidence from Asia's Emerging MarketsCorporate Finance: Governance
Robert Bushman, Joseph Piotroski (2005)
Financial Reporting Incentives for Conservative Accounting: The Influence of Legal and Political InstitutionsInternational Finance eJournal
J. Campbell (1993)
Understanding Risk and ReturnJournal of Political Economy, 104
Daniel Berkowitz, Katharina Pistor, J. Richard (2003)
Economic Development, Legality and the Transplant EffectEuropean Economic Review, 47
C. Himmelberg, R. Hubbard, Inessa Love (2000)
Investment, Protection, Ownership, and the Cost of CapitalERN: Other Microeconomics: Decision-Making under Risk & Uncertainty (Topic)
René Stulz (1999)
GOLBALIZATION, CORPORATE FINANCE, AND THE COST OF CAPITALJournal of Applied Corporate Finance, 12
Campbell Harvey, Warren Bailey, Arjun Divecha, V. Errunza, Wayne Ferson, Pierre Hillion, Antti Ilmanen, K. Koedijk, Harry Markowitz, James Moser, Jay Ritter, Rudi Shadt (1999)
First Draft : July 1992 Current Version : August 1 , 1994 Predictable Risk and Returns in Emerging Markets
E. Fama, K. French (1997)
Industry costs of equityJournal of Financial Economics, 43
G. Bekaert, Campbell Harvey (1994)
Time-Varying World Market IntegrationInternational Finance
Peter Clarkson, J. Guedes, Rex Thompson (1996)
On the Diversification, Observability, and Measurement of Estimation RiskJournal of Financial and Quantitative Analysis, 31
Charles Lee, D. Ng, B. Swaminathan (2003)
International Asset Pricing: Evidence from the Cross Section of Implied Cost of CapitalCorporate Finance: Valuation
Maureen O'Hara, D. Easley (2001)
Information and the Cost of CapitalCorporate Finance: Valuation
E. Fama, K. French (1992)
The Cross‐Section of Expected Stock ReturnsJournal of Finance, 47
Botosan (1997)
323The Accounting Review, 72
Peter Easton, S. Monahan (2005)
An Evaluation of Accounting-Based Measures of Expected ReturnsThe Accounting Review, 80
R. Porta, Florencio Silanes, Andrei Shleifer, Robert Vishny (1997)
Legal Determinants of External FinanceCapital Markets eJournal
P. Joos, Mark Lang (1994)
THE EFFECTS OF ACCOUNTING DIVERSITY - EVIDENCE FROM THE EUROPEAN-UNIONJournal of Accounting Research, 32
Harvey Harvey (1995)
“Predictable Risk and Returns in Emerging Markets.”The Review of Financial Studies, 8
Christine Botosan (1997)
Disclosure level and the cost of equity capitalAccounting review: A quarterly journal of the American Accounting Association, 72
Y. Amihud, H. Mendelson (1986)
Asset pricing and the bid-ask spreadJournal of Financial Economics, 17
James Ohlson, Beate Juettner-Nauroth (2005)
Expected EPS and EPS Growth as Determinantsof ValueReview of Accounting Studies, 10
C. Barry, Stephen Brown (1985)
Differential Information and Security Market EquilibriumJournal of Financial and Quantitative Analysis, 20
E. Elton (1999)
Expected return, realized return, and asset pricing testsJournal of Finance, 54
Florencio Silanes, Andrei Shleifer, Robert Vishny (1998)
Agency Problems and Dividend Policies Around the WorldChicago Booth: Fama-Miller Working Paper Series
Robyn Mclaughlin (1992)
Does the form of compensation matter? *1: Investment banker fee contracts in tender offersJournal of Financial Economics, 32
Healy Healy, Palepu Palepu (2001)
“Information Asymmetry, Corporate Disclosure, and the Capital Markets: A Review of the Empirical Disclosure Literature.”Journal of Accounting & Economics, 31
Bekaert (1995)
403The Journal of Finance, 50
Rafael Porta, Florencio López‐de‐Silanes, Andrei Shleifer, Robert Vishny (1996)
Law and FinanceJournal of Political Economy, 106
Feng Chen, B. Jorgensen, Y. Yoo (2004)
Implied cost of equity capital in earnings-based valuation: international evidence*Accounting and Business Research, 34
J. Francis, Ryan LaFond, Per Olsson, K. Schipper (2004)
Costs of Equity and Earnings AttributesThe Accounting Review, 79
La Porta La Porta, Lopez‐de‐Silanes Lopez‐de‐Silanes, Schleifer Schleifer, Vishny Vishny (2000b)
“Agency Problems and Dividend Policies Around the World.”The Journal of Finance, 55
Bushee Bushee, Leuz Leuz (2005)
“Economic Consequences of SEC Disclosure Regulation: Evidence from the OTC Bulletin Board.”Journal of Accounting & Economics, 39
R. Porta, Florencio Silanes, Andrei Shleifer (2003)
What Works in Securities Laws?Emerging Markets: Finance
R. Levine (1999)
Law, Finance, and Economic GrowthJournal of Financial Intermediation, 8
Luzi Hail, C. Leuz (2005)
Cost of Capital and Cash Flow Effects of U.S. Cross Listings
Mark Lang, Russell Lundholm (1998)
Corporate Disclosure Policy and Analyst Behavior
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
P. Healy, K. Palepu (2000)
Information Asymmetry, Corporate Disclosure and the Capital Markets: A Review of the Empirical Disclosure LiteratureManagement Practice
Bekaert (2000)
565The Journal of Finance, 55
ABSTRACT This paper examines international differences in firms' cost of equity capital across 40 countries. We analyze whether the effectiveness of a country's legal institutions and securities regulation is systematically related to cross‐country differences in the cost of equity capital. We employ several models to estimate firms' implied or ex ante cost of capital. Our results support the conclusion that firms from countries with more extensive disclosure requirements, stronger securities regulation, and stricter enforcement mechanisms have a significantly lower cost of capital. We perform extensive sensitivity analyses to assess the potentially confounding influence of countries' long‐run growth differences on our results. We also show that, consistent with theory, the cost of capital effects of strong legal institutions become substantially smaller and, in many cases, statistically insignificant as capital markets become globally more integrated.
Journal of Accounting Research – Wiley
Published: Jun 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.