MARC details
| 000 -LEADER |
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| fixed length control field |
02711nam a22002417a 4500 |
| 003 - CONTROL NUMBER IDENTIFIER |
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| control field |
ZW-GwMSU |
| 005 - DATE AND TIME OF LATEST TRANSACTION |
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| control field |
20241128065409.0 |
| 008 - FIXED-LENGTH DATA ELEMENTS--GENERAL INFORMATION |
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| fixed length control field |
241128b |||||||| |||| 00| 0 eng d |
| 022 ## - INTERNATIONAL STANDARD SERIAL NUMBER |
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| International Standard Serial Number |
0312-8962 |
| 040 ## - CATALOGING SOURCE |
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| Original cataloging agency |
MSU |
| Language of cataloging |
English |
| Transcribing agency |
MSU |
| Description conventions |
rda |
| 050 00 - LIBRARY OF CONGRESS CALL NUMBER |
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| Classification number |
HD31 AUS |
| 100 1# - MAIN ENTRY--PERSONAL NAME |
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| Personal name |
Shevlin,Terry |
| Relator term |
author |
| 245 10 - TITLE STATEMENT |
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| Title |
Some personal observations on the debate on the link between financial reporting quality and the cost of equity capital |
| Statement of responsibility, etc. |
created by Terry Shevlin |
| 264 1# - PRODUCTION, PUBLICATION, DISTRIBUTION, MANUFACTURE, AND COPYRIGHT NOTICE |
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| Place of production, publication, distribution, manufacture |
Los Angeles: |
| Name of producer, publisher, distributor, manufacturer |
Sage, |
| Date of production, publication, distribution, manufacture, or copyright notice |
2013. |
| 336 ## - CONTENT TYPE |
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| Source |
rdacontent |
| Content type term |
text |
| Content type code |
txt |
| 337 ## - MEDIA TYPE |
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| Source |
rdamedia |
| Media type term |
unmediated |
| Media type code |
n |
| 338 ## - CARRIER TYPE |
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| Source |
rdacarrier |
| Carrier type term |
volume |
| Carrier type code |
nc |
| 440 ## - SERIES STATEMENT/ADDED ENTRY--TITLE |
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| Title |
Australian journal of management |
| Volume/sequential designation |
Volume 38, number 3, |
| 520 3# - SUMMARY, ETC. |
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| Summary, etc. |
Within the last decade there has been much written about the possible link between the quality of a firm’s external financial reporting and its cost of equity capital. In this paper I provide my personal observations about the literature. I make the following points. I find the Francis et al. (2005) paper interesting and innovative. This paper documents a positive association between portfolio returns formed on the basis of accrual quality and firms’ realized returns after controlling for the Fama-French three factors. Francis et al. conclude that accrual quality is a priced risk factor. Second, while this conclusion might be too strong based on their results, I think the Core et al. (2008) critique of the Francis et al. claim is also too strong and does not lead me to reject accrual quality as a priced risk factor. Third, the evidence of an association between financial reporting quality and implied cost of capital estimates is robust. However several papers question the construct validity of these measures which are based on analyst earnings forecasts. I discuss these papers and conclude that the implied cost of capital does have empirical validity. Finally, various papers model the relation between financial reporting quality and cost of capital and, while interesting, mostly restrict themselves to a single factor asset pricing model. However, restricting the model to a single factor model by assumption rules out the possibility of information quality being a separately priced risk factor and further restricts the role information quality to informing about a firm’s covariances (or estimation error in the CAPM beta) because it is assumed that information quality is diversifiable. I think whether something is diversifiable is an empirical question that cannot be resolved by assumption within a theoretical model. |
| 650 ## - SUBJECT ADDED ENTRY--TOPICAL TERM |
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| Topical term or geographic name entry element |
Financial reporting quality |
| Form subdivision |
Information risk |
| General subdivision |
Price-risk factor |
| 856 ## - ELECTRONIC LOCATION AND ACCESS |
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| Uniform Resource Identifier |
https://doi.org/10.1177/0312896213510669 |
| 942 ## - ADDED ENTRY ELEMENTS (KOHA) |
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| Source of classification or shelving scheme |
Library of Congress Classification |
| Koha item type |
Journal Article |