What Affects the Implied Cost of Equity Capital?

نویسندگان
چکیده

برای دانلود رایگان متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

What Affects the Implied Cost of Equity Capital?

We estimate implied cost of equity capital (re) for a sample of firms from 1984 to 1998 using the Ohlson and Juettner (2000) model that does not make restrictive assumptions about clean surplus and payout policies. We find that re is strongly positively associated with conventional risk factors such as earnings variability, systematic and unsystematic return volatility, and leverage, and is neg...

متن کامل

Evaluating Implied Cost of Capital Estimates

We propose a two-dimensional evaluation scheme for assessing the quality of implied cost of capital (ICC) estimates when price is noisy. Under fairly general assumptions, high-quality ICC estimates should: (a) better forecast future realized returns, and (b) better forecast future ICCs. Empirically, we compare seven alternative ICC estimates and show that several perform well along both dimensi...

متن کامل

Multiple Large Shareholders, Control Contests, and Implied Cost of Equity*

In this paper, we examine whether the presence of multiple large shareholders alleviates firm’s agency costs and information asymmetry embedded in ultimate ownership structures. We extend extant corporate governance research by addressing the effects of multiple large shareholders on firm’s cost of equity capital—a proxy for firm’s information quality. Using data for 1,165 listed corporations f...

متن کامل

Evaluating Cross-Sectional Forecasting Models for Implied Cost of Capital

The computation of implied cost of capital (ICC) is constrained by the fact that around half of all firms do not have analysts’ earnings forecasts. Hou, van Dijk and Zhang (2012, HVZ) present a cross-sectional model to generate forecasts and compute ICC from these forecasts. However, the forecasts from the HVZ model perform worse than those from a naïve random walk model and show anomalous corr...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

ژورنال

عنوان ژورنال: SSRN Electronic Journal

سال: 2001

ISSN: 1556-5068

DOI: 10.2139/ssrn.258702