Showing 1 - 10 of 215
We use earnings forecasts from a cross-sectional model to proxy for cash flow expectations and estimate the implied cost of capital (ICC) for a large sample of firms over 1968-2008. The earnings forecasts generated by the cross-sectional model are superior to analysts' forecasts in terms of...
Persistent link: https://www.econbiz.de/10013133861
Persistent link: https://www.econbiz.de/10003936405
Persistent link: https://www.econbiz.de/10009550248
Persistent link: https://www.econbiz.de/10001755548
Persistent link: https://www.econbiz.de/10002607106
Persistent link: https://www.econbiz.de/10002452896
We use the Campbell (1991) return decomposition framework to reexamine the variation in the information content of earnings between profit firms and loss firms and over time. We show that current earnings surprises are more strongly correlated with the discount rate news component of returns for...
Persistent link: https://www.econbiz.de/10010531876
If investors have limited attention, then accounting outcomes that saliently highlight positive aspects of a firm's performance will promote high market valuations. When cumulative accounting value added (net operating income) over time outstrips cumulative cash value added (free cash flow), it...
Persistent link: https://www.econbiz.de/10012737563
Persistent link: https://www.econbiz.de/10003936383
Persistent link: https://www.econbiz.de/10012033893