... accurate than those from common discounted models or price multiple models. These improvements are attributable to the hybrid models' ability to incorporate stock price and more realistic assumptions about growth. In application two, we find that the implied cost of equity from the hybrid models better...

...Beng Wee Goh; Jimmy Lee; Chee Yeow Lim; Terry Shevlin ABSTRACT Based on Lambert, Leuz, and Verrecchia's (2007) derivation of the cost of equity capital in terms of expected cash flows, we generate a testable hypothesis that relates tax avoidance to a firm's cost of equity capital. Using three...

...Lawrence A. Gordon; Amanda L. Wilford ABSTRACT The primary objective of the current study is to empirically reexamine the relation between material weaknesses in internal control (MW) and cost of equity (CE). We direct particular emphasis to the way non-remediation, as well as remediation, of MW...

... 2012 2012 accounting quality asset pricing cash flow shocks cost of equity There is an ongoing debate as to whether the quality of accounting information influences firms' cost of equity capital. Much of the debate centers around the existence...