Earnings Smoothness, Average Returns, and Implied Cost of Equity Capital

By John M. McInnis. 2010

225 citations recorded by the source corpus.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/2553ab2f0b12d6b8310e7eecffe8a4f8bfe6c176

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Christopher S. Armstrong
2. Christine A. Botosan
3. Daniel J. Taylor
4. John E. Core
5. Marlene A. Plumlee
6. H. Wen
7. Robert E. Verrecchia
8. Lei Gao

In Finance

1. Christine A. Botosan
2. Christopher S. Armstrong
3. Marlene A. Plumlee
4. H. Wen
5. John E. Core
6. Daniel J. Taylor
7. Lei Gao
8. Joseph H. Zhang

Citations in the corpus

• When Does Information Asymmetry Affect the Cost of Capital (2011, background): “…cost of capital measures are an alternative proxy for expected returns, and there is an ongoing debate in the literature about the use of future returns versus implied cost of capital as a proxy for expected returns (e.g., Easton and Monahan, 2005; Guay, Kothari, and Shu, 2006; McInnis, 2010).”
• Conditional conservatism and cost of capital (2011, unknown): “To mitigate this concern, we apply the correction proposed by Shanken (1992) to adjust for the overstated precision of the Fama MacBeth standard errors.”
• Cost of Capital and Earnings Transparency (2008, unknown): “Also, because Gode and Mohanram (2008) and McInnis (2010) find that estimates of implied expected cost of capital reflect bias in analysts’ forecasts, we use the procedure in Gode and Mohanram (2008) to correct the implied expected cost of capital measures for analysts’ forecast bias.”
• Firms’ earnings smoothing, corporate social responsibility, and valuation (2015, methodology): “Despite that corporate executives prefer less volatile earnings path, 1 income-smoothing firms are not associated with realized cost of capitals (McInnis 2010) or equity value (Rountree, Weston, and Allayannis 2008).”
• The Relation Between Expected Returns, Realized Returns, and Firm Risk Characteristics* (2010, background): “, not averaged) realized returns to proxy for Et)1(rt) (e.g., Easley, Hvidkjaer, and O’Hara 2002; McInnis 2010).”
• The Implied Cost of Capital: A New Approach (2012, unknown): “, 2002), earnings smoothness (Francis et al., 2004; McInnis, 2010), and accruals quality (Francis et al.”
• The Relation between Expected Returns, Realized Returns, and Firm Risk Characteristics (2011, background): “, not averaged) realized returns to proxy for Et)1(rt) (e.g., Easley, Hvidkjaer, and O’Hara 2002; McInnis 2010).”
• Investor Competition Over Information and the Pricing of Information Asymmetry (2011, unknown): “Second, we extend previous literature that has empirically investigated the pricing of information asymmetry and information quality (e.g., Easley et al. 2002; Francis et al. 2004, 2005; Core et al. 2008; Duarte and Young 2009; Mohanram and Rajgopal 2009; McInnis 2010).”