The Experts below are selected from a list of 168285 Experts worldwide ranked by ideXlab platform
James E Short - One of the best experts on this subject based on the ideXlab platform.
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the effect of disclosures by management analysts and business press on Cost of Capital return volatility and analyst forecasts a study using content analysis
The Accounting Review, 2009Co-Authors: S P Kothari, James E ShortAbstract:ABSTRACT: We document systematic evidence of risk effects of disclosures culled from a virtually exhaustive set of sources from the print medium. We content analyze more than 100,000 disclosure reports by management, analysts, and news reporters (i.e., business press) in constructing firm‐specific disclosure measures that are quantitative and amenable to replication. We expect credibility and timeliness differences in the disclosures by source, which would translate into differential Cost of Capital effects. We find that when content analysis indicates favorable disclosures, the firm's risk, as proxied by the Cost of Capital, stock return volatility, and analyst forecast dispersion, declines significantly. In contrast, unfavorable disclosures are accompanied by significant increases in risk measures. Analysis of disclosures by source—corporations, analysts, and the business press—reveals that negative disclosures from business press sources result in increased Cost of Capital and return volatility, and fa...
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the effect of disclosures by management analysts and financial press on Cost of Capital return volatility and analyst forecasts a study using content analysis
Social Science Research Network, 2008Co-Authors: S P Kothari, James E ShortAbstract:We document systematic evidence of risk effects of disclosures culled from a virtually exhaustive set of sources from the print medium. We content analyze more than 100,000 disclosure reports by management, analysts, and news reporters (i.e., financial press) in constructing firm-specific disclosure measures that are quantitative and amenable to replication in future. We expect credibility and timeliness differences in the disclosures by source, which would translate into differential Cost of Capital effects. We find that when content analysis indicates favorable disclosures, the firm's risk as proxied for by the Cost of Capital, stock return volatility, and analyst forecast dispersion decline significantly. In contrast, unfavorable disclosures are accompanied by significant increases in risk measures. Analysis of disclosures by source - corporations, analysts, and the financial press - reveals that negative disclosures from financial press sources result in increased Cost of Capital and return volatility, and favorable reports from financial press reduce the Cost of Capital and return volatility.
Jing Liu - One of the best experts on this subject based on the ideXlab platform.
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earnings quality insider trading and Cost of Capital
Journal of Accounting Research, 2005Co-Authors: David Aboody, John S Hughes, Jing LiuAbstract:Previous research argues that earnings quality, measured as the unsigned abnormal accruals, proxies for information asymmetries that affect Cost of Capital. We examine this argument directly in two stages. In the first stage, we estimate firms' exposure to an earnings quality factor in the context of a Fama-French three-factor model augmented by the return on a factor-mimicking portfolio that is long in low earnings quality firms and short in high earnings quality firms. In the second stage, we examine whether the earnings quality factor is priced and whether insider trading is more profitable for firms with higher exposure to that factor. Generally speaking, we find evidence consistent with pricing of the earnings quality factor and insiders trading more profitably in firms with higher exposure to that factor.
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earnings quality insider trading and Cost of Capital
Social Science Research Network, 2003Co-Authors: David Aboody, John S Hughes, Jing LiuAbstract:Previous research argues that earnings quality, measured as the unsigned abnormal accruals, proxies for information asymmetries that affect Cost of Capital. We examine this argument directly in two stages. In the first stage, we estimate the firm's exposure to an earnings quality factor in the context of a Fama-French three factor model augmented by the return on a factor-mimicking portfolio that is long in low earnings quality firms and short in high earnings quality firm. In the second stage, we examine whether the earnings quality factor is priced and whether insider trading is more profitable for firms with higher exposure to that factor. Generally speaking, we find evidence consistent with pricing of the earnings quality factor and insiders trading more profitably in firms with higher exposure to that factor.
Lance A Young - One of the best experts on this subject based on the ideXlab platform.
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information asymmetry information dissemination and the effect of regulation fd on the Cost of Capital
Journal of Financial Economics, 2008Co-Authors: Jefferson Duarte, Xi Han, Jarrad Harford, Lance A YoungAbstract:Abstract This paper considers the impact of Regulation Fair Disclosure (FD) on firms’ information environments and Costs of Capital. For NYSE/Amex firms we find little evidence of a change in the Cost of Capital attributable to Regulation FD. For Nasdaq firms we find that Regulation FD increased firms’ Costs of Capital by 10–19 basis points per annum though the statistical significance of this change is modest for some of our models. We also show substantial cross-sectional variation in the Cost of Capital changes. We find that Cost of Capital changes were negatively related to both pre-regulation firm size and PIN. In addition to the findings regarding Regulation FD, this research contributes to a growing literature that documents links between firms’ information environments and their Costs of Capital.
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information asymmetry information dissemination and the effect of regulation fd on the Cost of Capital
Social Science Research Network, 2007Co-Authors: Jefferson Duarte, Xi Han, Jarrad Harford, Lance A YoungAbstract:This paper considers the impact of Regulation FD on firms' information environments and Costs of Capital. For NYSE/AMEX firms we find little evidence of a change in the Cost of Capital attributable to Regulation FD. For NASDAQ firms we find that Regulation FD increased firms' Costs of Capital by ten to 19 basis points per annum though the statistical significance of this change is modest for some of our models. We also document substantial cross-sectional variation in the Cost of Capital changes. We find that Cost of Capital changes were negatively related to both pre-regulation firm size and PIN. In addition to the findings regarding Regulation FD, this research contributes to a growing literature that documents links between firms' information environments and their Costs of Capital.
S P Kothari - One of the best experts on this subject based on the ideXlab platform.
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the effect of disclosures by management analysts and business press on Cost of Capital return volatility and analyst forecasts a study using content analysis
The Accounting Review, 2009Co-Authors: S P Kothari, James E ShortAbstract:ABSTRACT: We document systematic evidence of risk effects of disclosures culled from a virtually exhaustive set of sources from the print medium. We content analyze more than 100,000 disclosure reports by management, analysts, and news reporters (i.e., business press) in constructing firm‐specific disclosure measures that are quantitative and amenable to replication. We expect credibility and timeliness differences in the disclosures by source, which would translate into differential Cost of Capital effects. We find that when content analysis indicates favorable disclosures, the firm's risk, as proxied by the Cost of Capital, stock return volatility, and analyst forecast dispersion, declines significantly. In contrast, unfavorable disclosures are accompanied by significant increases in risk measures. Analysis of disclosures by source—corporations, analysts, and the business press—reveals that negative disclosures from business press sources result in increased Cost of Capital and return volatility, and fa...
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the effect of disclosures by management analysts and financial press on Cost of Capital return volatility and analyst forecasts a study using content analysis
Social Science Research Network, 2008Co-Authors: S P Kothari, James E ShortAbstract:We document systematic evidence of risk effects of disclosures culled from a virtually exhaustive set of sources from the print medium. We content analyze more than 100,000 disclosure reports by management, analysts, and news reporters (i.e., financial press) in constructing firm-specific disclosure measures that are quantitative and amenable to replication in future. We expect credibility and timeliness differences in the disclosures by source, which would translate into differential Cost of Capital effects. We find that when content analysis indicates favorable disclosures, the firm's risk as proxied for by the Cost of Capital, stock return volatility, and analyst forecast dispersion decline significantly. In contrast, unfavorable disclosures are accompanied by significant increases in risk measures. Analysis of disclosures by source - corporations, analysts, and the financial press - reveals that negative disclosures from financial press sources result in increased Cost of Capital and return volatility, and favorable reports from financial press reduce the Cost of Capital and return volatility.
David Aboody - One of the best experts on this subject based on the ideXlab platform.
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earnings quality insider trading and Cost of Capital
Journal of Accounting Research, 2005Co-Authors: David Aboody, John S Hughes, Jing LiuAbstract:Previous research argues that earnings quality, measured as the unsigned abnormal accruals, proxies for information asymmetries that affect Cost of Capital. We examine this argument directly in two stages. In the first stage, we estimate firms' exposure to an earnings quality factor in the context of a Fama-French three-factor model augmented by the return on a factor-mimicking portfolio that is long in low earnings quality firms and short in high earnings quality firms. In the second stage, we examine whether the earnings quality factor is priced and whether insider trading is more profitable for firms with higher exposure to that factor. Generally speaking, we find evidence consistent with pricing of the earnings quality factor and insiders trading more profitably in firms with higher exposure to that factor.
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earnings quality insider trading and Cost of Capital
Social Science Research Network, 2003Co-Authors: David Aboody, John S Hughes, Jing LiuAbstract:Previous research argues that earnings quality, measured as the unsigned abnormal accruals, proxies for information asymmetries that affect Cost of Capital. We examine this argument directly in two stages. In the first stage, we estimate the firm's exposure to an earnings quality factor in the context of a Fama-French three factor model augmented by the return on a factor-mimicking portfolio that is long in low earnings quality firms and short in high earnings quality firm. In the second stage, we examine whether the earnings quality factor is priced and whether insider trading is more profitable for firms with higher exposure to that factor. Generally speaking, we find evidence consistent with pricing of the earnings quality factor and insiders trading more profitably in firms with higher exposure to that factor.
