Journal ArticleDOI
Industry costs of equity
Eugene F. Fama,Kenneth R. French +1 more
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TLDR
In this paper, the authors show that standard errors of more than 3.0% per year are typical for both the CAPM and the three-factor model of Fama and French (1993), and these large standard errors are the result of uncertainty about true factor risk premiums and imprecise estimates of the loadings of industries on the risk factors.About:
This article is published in Journal of Financial Economics.The article was published on 1997-02-01. It has received 6064 citations till now. The article focuses on the topics: Equity risk & Residual income valuation.read more
Citations
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Journal ArticleDOI
Self-Selection and the Forecasting Abilities of Female Equity Analysts
TL;DR: The authors investigated whether there are systematic differences between the forecasting style and abilities of female and male analysts, and whether market participants recognize these differences, and found that female analysts issue bolder and more accurate forecasts and their accuracy is higher in market segments in which their concentration is lower.
Journal ArticleDOI
Customer-Base Concentration, Profitability and the Relationship Life Cycle
TL;DR: In this paper, the authors introduce a dynamic relationship life-cycle hypothesis and find that the relation between customer-base concentration and profitability is significantly negative in the early years of the relationship, but becomes positive as the relationship matures.
Posted Content
Discussion of Cost of Capital, Strategic Disclosures and Accounting Choice
TL;DR: In this paper, the authors construct an innovative measure of timely disclosure, that attempts to capture quality rather than quantity of strategic disclosures, motivated by new theoretical research by Gietzmann and Trombetta (2003).
Journal ArticleDOI
Cost of Capital, Strategic Disclosures and Accounting Choice
Miles B. Gietzmann,J. Ireland +1 more
TL;DR: In this paper, the authors consider empirically how to reinterpret and test Botosan and Plumlee like hypotheses when firms are assumed to communicate along two strategic dimensions: via disclosures concerning strategic ventures and in addition via choice of accounting policy Contrary to B&P, they find a negative relationship between their measure of timely disclosure and cost of equity capital.
ReportDOI
Shaped by Booms and Busts: How the Economy Impacts CEO Careers and Management Styles
Antoinette Schoar,Luo Zuo +1 more
TL;DR: This paper showed that economic conditions when managers enter the labor market have long-run effects on their career paths and managerial styles, such as lower investment in capital expenditures and research and development, more cost cutting, and lower leverage and working capital needs.
References
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Journal ArticleDOI
Common risk factors in the returns on stocks and bonds
Eugene F. Fama,Kenneth R. French +1 more
TL;DR: In this article, the authors identify five common risk factors in the returns on stocks and bonds, including three stock-market factors: an overall market factor and factors related to firm size and book-to-market equity.
Journal ArticleDOI
Capital asset prices: a theory of market equilibrium under conditions of risk*
TL;DR: In this paper, the authors present a body of positive microeconomic theory dealing with conditions of risk, which can be used to predict the behavior of capital marcets under certain conditions.
Journal ArticleDOI
The Cross‐Section of Expected Stock Returns
Eugene F. Fama,Kenneth R. French +1 more
TL;DR: In this paper, Bhandari et al. found that the relationship between market/3 and average return is flat, even when 3 is the only explanatory variable, and when the tests allow for variation in 3 that is unrelated to size.
Book ChapterDOI
The valuation of risk assets and the selection of risky investments in stock portfolios and capital budgets
TL;DR: In this article, the problem of selecting optimal security portfolios by risk-averse investors who have the alternative of investing in risk-free securities with a positive return or borrowing at the same rate of interest and who can sell short if they wish is discussed.
Journal ArticleDOI
The arbitrage theory of capital asset pricing
TL;DR: Ebsco as mentioned in this paper examines the arbitrage model of capital asset pricing as an alternative to the mean variance pricing model introduced by Sharpe, Lintner and Treynor.