Use of Forecasts of Earnings to Estimate and Compare Cost of Capital Across Regimes

By Peter D. Easton. 2006

118 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/88a3403d79c90659ae88a6ecd2518d6beee4dace

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Citations in the corpus

Agency Costs of Free Cash Flow and the Effect of Shareholder Rights on the Implied Cost of Equity Capital (2010, unknown): “where RMED (in percents) is the median of the cost of equity estimates by GLS (2001), OJ (2005) as implemented by Gode and Mohanram (2003), CT (2001), and the modified PEG model of Easton (2004). Rf is the risk-free rate, which is measured as the yield on 10-year Treasury bonds. G INDEX is the “Gove”
Company reputation and the cost of equity capital (2014, unknown): “This essentially uses each company as its own control (as recommended by Easton 2006, p. 393) because each company in the ADD or DROP group appears twice—once as an ‘‘Most Admired’’ company and once as a non-‘‘Most Admired’’ company.”
Cross-sectional variation in the economic consequences of international accounting harmonization: The case of mandatory IFRS adoption in the UK ☆ (2007, result): “Although some studies suggest possible weaknesses of such an approach (Easton, 2006; Guay, Kothari, and Shu, 2005) other studies show that their estimates capture common proxies of risk (e.g., Gebhardt et al., 2001; Gode and Mohanram, 2003; Botosan and Plumlee, 2005).”
Cooking the books : recipes and costs of falsified financial statements in China (2011, unknown): “However, this approach has been criticized as the forecasts may be biased and therefore do not accurately reflect the market’s expectations (Easton, 2006; Easton and Sommers, 2007; Easton 2009; Hou et al., 2010).”