scholarly journals Accounting Information, the Cost of Capital and Excess Stock Returns: The Role of Earnings Quality-Evidence from Panel Data

2012 ◽  
Vol 5 (2) ◽  
Author(s):  
Nicholas Apergis ◽  
George Artikis ◽  
Sofia Eleftheriou ◽  
John Sorros
Keyword(s):  
Panel Data ◽  
Stock Returns ◽  
Cost Of Capital ◽  
Earnings Quality ◽  
Accounting Information ◽  
Excess Stock Returns ◽  
The Cost ◽  
Quality Evidence

Confirming Anomalies

2021 ◽  
pp. 2150024
Author(s):  
Peter Chinloy ◽  
Matthew Imes
Keyword(s):  
Capital Structure ◽  
Stock Returns ◽  
Cost Of Capital ◽  
Simultaneous Equations ◽  
Second Stage ◽  
Predicted Values ◽  
The Cost ◽  
Over Time ◽  
Identification Strategy

A procedure confirms whether a return-factor correlation is anomalous or results from endogenous simultaneous-equations bias. The identification strategy sorts the cost of capital components for instruments. In the first stage, the initially found factors are regressed on cost instruments. In the second stage, a confirmed anomaly has predicted value significant in returns and exogenous. Taxes, depreciation and capital structure are strong instruments, affecting 1980–2017 quarterly U.S. stock returns. Size, value and profitability decisions are significant in instruments. Returns increase in fitted profits, but not small size. Actual and predicted values have weaker correlation with returns over time.

scholarly journals PENERAPAN INFORMASI AKUNTANSI DIFERENSIAL DALAM PENGAMBILAN KEPUTUSAN MEMBELI ATAU MEMBUAT SENDIRI PRODUK SETENGAH JADI PADA UD. BERKAT ANUGERAH

2013 ◽  
Vol 8 (4) ◽  
Author(s):  
Phamela D Tampubolon ◽  
David Paul Elia Saerang ◽  
Agus Toni Poputra
Keyword(s):  
Research Method ◽  
Accounting Information ◽  
Third Party ◽  
Economic Conditions ◽  
Short Term ◽  
Descriptive Research ◽  
Course Of Action ◽  
Management Measure ◽  
The Cost

Amid competition is so rapid and uncertain economic conditions, every company is required to be more efficient in order tobe more efficient in orderto survive and all of it can not be separated from the role of management.  Management measure which is occupied to measure the success or failure of the company is profit. To produce an efficient profit differential accounting information requires management to select the best course of action among alternatives available. The purpose of this study is to analyze the application of differential accounting information in the decision to buy or make your own semi-finished products on UD. Berkat Anugerah. This study uses a descriptive research method. The result of the analysis of research conducted on UD. Berkat Anugerah seen from the cost accounting showed diferential role in the short-term decision making, where the company should buy semi-finished products from third party cost incurred due to lower than producing its own.

Thirty years after water privatization—is the English model the envy of the world?

2020 ◽  
Vol 36 (1) ◽  
pp. 69-85 ◽  
Author(s):  
Dieter Helm
Keyword(s):  
Cost Of Capital ◽  
Superior Performance ◽  
Water Regulation ◽  
Water Privatization ◽  
Balance Sheets ◽  
The World ◽  
Private Incentives ◽  
Regulation Model ◽  
The Cost

Abstract The paper considers whether water privatization 30 years ago has delivered the promised superior performance to nationalization, which remains the dominant model in Europe. The paper sets out the arguments at privatization, in particular in relation to efficiency, the managerial incentives, the role of private-sector balance sheets in facilitating investment, and the impacts on the cost of capital. Alternative explanations of relative performance, notably the regulation model adopted, are highlighted, and the paper concludes by outlining an alternative model of water regulation which better marries up public responsibilities and private incentives.

scholarly journals Do Strict Capital Requirements Raise the Cost of Capital? Bank Regulation, Capital Structure, and the Low-Risk Anomaly

2015 ◽  
Vol 105 (5) ◽  
pp. 315-320 ◽  
Author(s):  
Malcolm Baker ◽  
Jeffrey Wurgler
Keyword(s):  
Capital Structure ◽  
Stock Returns ◽  
Cost Of Capital ◽  
Weighted Average ◽  
Capital Requirements ◽  
Structure Theory ◽  
Treasury Bills ◽  
Percentage Point Increase ◽  
Point Increase ◽  
The Cost

Traditional capital structure theory predicts that reducing banks' leverage reduces the risk and cost of equity but does not change the weighted average cost of capital, and thus the rates for borrowers. We confirm that the equity of better-capitalized banks has lower beta and idiosyncratic risk. However, over the last 40 years, lower risk banks have not had lower costs of equity (lower stock returns), consistent with a stock market anomaly previously documented in other samples. A calibration suggests that a binding ten percentage point increase in Tier 1 capital to risk-weighted assets could double banks' risk premia over Treasury bills.

How are corporate disclosures related to the cost of capital? The fundamental role of information asymmetry

2016 ◽  
Vol 54 (7) ◽  
pp. 1669-1701 ◽  
Author(s):  
Beatriz Cuadrado-Ballesteros ◽  
Isabel-Maria Garcia-Sanchez ◽  
Jennifer Martinez Ferrero
Keyword(s):  
Information Asymmetry ◽  
Cost Of Capital ◽  
Agency Conflicts ◽  
Content Type ◽  
Mediator Role ◽  
International Setting ◽  
The Cost ◽  
Role Of Information ◽  
Corporate Disclosures

Purpose – The purpose of this paper is to analyze empirically the fundamental role that information asymmetry plays in the functioning of an efficient capital market as mediator in the relation between corporate disclosures and cost of capital. Design/methodology/approach – By using a sample of 1,260 international non-financial listed companies in the period 2007-2014. Findings – The findings suggest that high-quality financial and social disclosures quality reduce the cost of capital, by decreasing information asymmetry. In other words, the authors find evidence of the mediator role of information asymmetry in the relation between corporate disclosures and the cost of capital. These results are also controlled for differences on accounting standards and other institutional factors. Originality/value – The central assumption is that the demand for corporate disclosures that reduces the information advantages of some investors (who are more informed) arises from agency conflicts and these information differences in turn, determine the cost of capital. This paper is the first attempt to study, jointly, the effects of decreasing information asymmetries by corporate disclosures on the cost of capital in an international setting. In addition, the authors focussed on both financial and social disclosures, creating empirical proxies whose validity for the analysis has been evidenced.

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