| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5086772 | Journal of Accounting and Economics | 2012 | 23 Pages |
Abstract
⺠We propose a new approach to estimate the implied cost of capital (ICC). ⺠We estimate the ICC using the earnings forecasts from a cross-sectional model. ⺠Our model produces earnings forecasts that are superior to analysts' forecasts. ⺠The model-based ICC is a reliable proxy for expected returns. ⺠We study the relation between firm characteristics and the model-based ICC.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Kewei Hou, Mathijs A. van Dijk, Yinglei Zhang,