Journal ArticleDOI
Earnings Quality and the Equity Risk Premium: A Benchmark Model*
TLDR
In this article, the authors propose a model that links earnings quality to the equity risk premium in an infinite-horizon consumption capital asset pricing model (CAPM) economy, where risk-averse traders hold diversified portfolios consisting of risk-free bonds and shares of many risky firms.Citations
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Journal Article
Is capm a good predictor of stock return in nigerian building materials sector stocks
TL;DR: In this paper, the required rate of return of Nigerian Building Materials stocks from 2000-2012 and compare them with the actual rates of return in the corresponding periods to indentify the valuation status of the stocks.
Journal Article
Is CAPM a Good Predictor Of Stock Return In The Nigerian Leasing And Real Estate Stocks
TL;DR: In this article, the required rate of return of Nigerian leasing and real estate sectors stocks from 2000-2012 and compare them with the actual rates of return in the corresponding periods to indentify the valuation status of the stocks.
DissertationDOI
Accurals quality and price synchronicity
TL;DR: In this article , the authors examined the relation between accruals quality and price synchronicity, a measure of the relative amount of firm-specific information reflected in price.
Journal Article
Is CAPM A Good Predictor Of Stock Return In The Nigerian Chemical And Paints Stocks
TL;DR: In this article, the authors tested the predictive power of the Capital Asset Pricing Model (CAPM) as enunciated by Sharpe (1964) in the determination of the required rates of return of Nigerian chemical and paints stocks that coincides with the actual market return, and found that the CAPM made thirtyone undervaluations and sixty-five overvaluations to make a total of ninety-six misappropriations in the thirteen years period of study.
References
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Journal Article
Disclosure level and the cost of equity capital
TL;DR: In this paper, the authors examined the relationship between disclosure level and the cost of equity capital by regressing firm-specific estimates of cost of capital on market beta, firm size and a self-constructed measure of disclosure level.
Journal ArticleDOI
Dividend Policy under Asymmetric Information
Merton H. Miller,Kevin Rock +1 more
TL;DR: In this article, the authors extend the standard finance model of the firm's dividend/investment/financing decisions by allowing the managers to know more than outside investors about the true state of the current earnings.
Journal ArticleDOI
Disclosure, Liquidity, and the Cost of Capital
TL;DR: In this article, the authors studied the causes and consequences of a security's liquidity, especially the effect of future liquidity on the security's current price-equivalently the effect on its required expected rate of return, its cost of capital.
Journal ArticleDOI
Costs of Equity and Earnings Attributes
TL;DR: In this paper, the authors examine the relation between the cost of equity capital and seven attributes of earnings: accrual quality, persistence, predictability, smoothness, value relevance, timeliness, and conservatism.
Journal ArticleDOI
Information and the Cost of Capital
David Easley,Maureen O'Hara +1 more
TL;DR: In this article, the authors investigate the role of information in affecting a firm's cost of capital, and they show that differences in the composition of information between public and private information affect the costs of capital.