This paper investigates the impact of a firm's annual report readability and ambiguous tone on its borrowing costs. We find that firms with larger 10-K file sizes and a higher proportion of uncertain and weak modal words in 10-Ks have stricter loan contract terms and greater future stock price...

This paper examines prediction errors in the general dividend discount model using a back-test method. The prediction errors are based on realized dividends, terminal stock prices, and estimates of time-varying discount rates. Models of varying lengths are examined in our tests. We include firms...

I examine whether incorporating economically-motivated prior information yields more accurate forecasts of industry costs of equity. I find that incorporating the long-run mean of the CAPM parameters and the industry characteristics in the cross section produces more accurate parameter...