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Estimating the Equity Risk Premium with Time-Series Forecasts of Earnings

Allee, Kristian D. - 2011

The size of the equity risk premium remains an unanswered question in the accounting and finance literature. This study proposes a new approach to reverse-engineer the equity risk premium, distinct from prior research, in that it does not rely on analysts’ forecasts to proxy for the market’s...

Persistent link: https://www.econbiz.de/10014195500

Addressing Puzzle About Equity Valuation Using Multiples : How Earnings Forecasts Outperform Residual Income Model in Multiples

Kim, Ja Ryong - 2014

multiples, apparently outperform the theory-based residual income model in terms of pricing error. This paper explains … residual income models again outperform earnings forecasts using multiples, further supporting the superiority of theory …-old puzzle in equity valuation and demonstrates that theory-based valuation models are empirically superior to rule …

Persistent link: https://www.econbiz.de/10013040270

Estimating the Equity Risk Premium with Time-Series Forecasts of Earnings

Allee, Kristian D. - 2011

Persistent link: https://www.econbiz.de/10013133582

The Predictive Power of Comprehensive Income and its Individual Components Under IFRS

Pronobis, Paul - 2012

This study examines the predictive power of comprehensive income and its individual components within the homogenous institutional setting of German IFRS firms. The results could be relevant for the standard setters IASB and FASB and their joint project “Financial Statement Presentation”. We...

Persistent link: https://www.econbiz.de/10013116252

Predicting Early Warning Signals of Financial Distress : Theory and Empirical Evidence

Klobucnik, Jan - 2017

This study proposes a simple theoretical framework that allows for assessing financial distress up to five years in advance. We jointly model financial distress by using two of its key driving factors: declining cash-generating ability and insufficient liquidity reserves. The model is based on...

Persistent link: https://www.econbiz.de/10012974529

The Role of 'Other Information' in Analysts’ Forecasts in Understanding Stock Return Volatility

Shan, Yaowen - 2013

This study proposes and validates “other information” in analysts' forecasts as a legitimate proxy for future cash flows, and examines its incremental role in explaining stock return volatility. We suggest that “other information” contains information about fundamentals beyond that...

Persistent link: https://www.econbiz.de/10013075116

The Simultaneous Relation between Auditor Switching and Audit Opinion : An Empirical Analysis

Krishnan, Jagan; Krishnan, Jayanthi; Stephens, Ray G. - 2014

Previous studies examining the relation between the audit opinion and auditor switching assume a one-way causation, with the issuance of a qualified opinion triggering a switch. However, analytical studies dealing with auditor independence issues (e.g., Magee and Tseng, 1990; Dye, 1991; Teoh, 1992)...

Persistent link: https://www.econbiz.de/10014210285

Earnings Quality : Some Evidence on the Role of Auditor Tenure and Auditors' Industry Expertise

Gul, Ferdinand A.; Fung, Simon; Jaggi, Bikki - 2009

Prior studies suggest that auditors with short tenure are associated with lower earnings quality because of the lack of client-specific knowledge and/or low balling. In this study, we examine whether industry specialization of auditors and low balling affect the association between auditor...

Persistent link: https://www.econbiz.de/10014210111

The influence of audit firm specialization on analysts' forecast errors

Payne, Jeff L. - In: Auditing : a journal of practice & theory 27 (2008) 2, pp. 109-136

Persistent link: https://www.econbiz.de/10003842156

Auditing Complex Estimates : How Do Construal Level and Evidence Formatting Impact Auditors’ Consideration of Inconsistent Evidence?

Backof, Ann G. - 2019

The PCAOB is concerned about auditors' tendency to ignore relevant information that is inconsistent with management's assumptions underlying complex estimates. We find that priming auditors to consider how management arrived at a particular assumption helps curb aggressive reporting by...

Persistent link: https://www.econbiz.de/10012905320