Purpose – In response to recent concerns on earnings quality and a firm's fundamental performance, the purpose of this paper is to re‐examine salient questions under accrual accounting: how earnings quality affects the role of earnings and operating cash flows in a firm's valuation....

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...

Purpose – In response to recent concerns on earnings quality and a firm's fundamental performance, the purpose of this paper is to re-examine salient questions under accrual accounting: how earnings quality affects the role of earnings and operating cash flows in a firm's valuation....