Purpose – The purpose of this paper is to examine whether the choice of accounting treatment of transition obligation under SFAS 106 affects the value of firms, and also whether the quality of earnings is improved after the implementation of SFAS 106. Design/methodology/approach – Different...

Purpose – The purpose of this paper is to investigate the effects of class action litigation on firms' cost of equity capital. Design/methodology/approach – The paper uses three different models to estimate the cost of equity capital. To separate the impact of lawsuit filings on the cost of...