We study how firm characteristics are correlated with stock price levels by measuring the long-term discount rates (defined as the internal rate of return) of anomaly portfolios over a long horizon. We develop a simple, non-parametric methodology to estimate the long-term equity discount rate...

Long-term discount rate is different from short-term expected return. Long-term discount rate determines the level of equity valuation, whereas short-term return reflects the change in valuation. Long-term discount rate is relevant to corporate managers as it summarizes a firm's financing cost,...

In this study, we examine the interplay between public environmental enforcement and private lender monitoring and its effects on borrowers’ environmental activities. To capture lender environmental monitoring, we use environmental covenants in loan agreements that require borrowers to take...