Costs of Equity and Earnings Attributes

By Jennifer Francis, Ryan Lafond, Per Olsson, Katherine Schipper. 2004

2,468 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/4c108ae42c6e1fefeef7ac1e2d71ba8dadf99793

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Citations in the corpus

Properties of implied cost of capital using analysts’ forecasts (2011, positive): “We study five valuation models that have been used in the literature to estimate the implied cost of capital: Gebhardt et al. (GLS), Claus and Thomas (CT), Ohlson and Juettner-Nauroth (OJN) as operationalized in Gode and Mohanram (2003), the finite Gordon model (Gordon), and the PEG Ratio model (PEG”
Accounting Information, Disclosure, and the Cost of Capital (2007, neutral): “(e.g., Botosan, 1997; Botosan and Plumlee, 2002; Francis et al., 2004 ).3 It is important to”
The Impact of IFRS Adoption on the Value Relevance of Book Value and Earnings (2011, methodology): “Thus, using association as a market-based attribute, IFRS adoption benefits (see Francis et al., 2004; Schipper, 2009) would appear to be limited.”
The Effect of Mandatory Adoption of IFRS on Earnings Quality: Evidence from the European Union (2012, background): “RET15it 1⁄4 a0 þ a1IFRS þ a2NIBEit þ a3IFRS NIBEit þ a4DNIBEit þ a5IFRS DNIBEit þ eit; ð12Þ where RET151⁄4 the 15-month stock return ending three months after fiscal year-end; NIBE1⁄4 the net income before extraordinary items scaled by beginning-of-period market capitalization of equity; DNIBE is ch”
Comparing the Value Relevance, Predictive Value, and Persistence of Other Comprehensive Income and Special Items (2011, methodology): “For years prior to 1988, following Francis et al. (2004), we define CF as net income before extraordinary items (data item #18) less total accruals, where total accruals are defined as the change in current assets (data item #4) less the change in current liabilities (data item #5) less the change…”
Do the Big 4 and the Second-tier firms provide audits of similar quality? (2010, background): “Also, a higher degree of financial 16 Consistent with the prior literature (Basu, 2004; Botosan and Plumlee, 2005; Francis et al., 2004), Dhaliwal et al. (2006, p. 699) notes that ‘‘at a theoretical level, ex ante estimation is more appropriate for estimating the return demanded by stockholders…”
Audit Quality, Earnings Management, and Cost of Equity Capital: Evidence from India (2017, result): “These results support H1a, that higher audit quality reduces earnings management (DeAngelo, 1981; Palmrose, 1986; Carcello et al., 2002; Francis et al., 2004).”
How far can we trust earnings numbers? What research tells us about earnings management (2013, background): “Note that Core et al. (2008) do no dispute the evidence in Francis et al. (2004) based on implied cost of capital estimates.”