In a standard q-theory model, corporate investment is negatively related to the cost of
capital. Empirically, we find that the weighted average cost of capital matters for corporate …

In this study, we examine the proposition that the auditor's going-concern modified opinion is
a valuable risk communication to the equity market that results in a shift of the market's …

This essay provides a selective critical review of the financial accounting literature focusing
primarily on accounting valuation including implied costs of equity capital, empirical …

In this paper, I survey empirical research on the relevance of firms' financial report
information for the evaluation of their risk. I recommend that financial reporting policymakers …

Historical cost accounting deals with uncertainty by deferring the recognition of earnings
until the uncertainty has largely been resolved. Such accounting affects both earnings and …

Under accounting principles, the recognition of earnings is path‐dependent and the path
depends on risk and its resolution: under the so‐called realization principle, earnings are …

The problem of determining the cost of equity is crucial to the development of organizations.
It is an essential means of calculating value creation. The financial literature has proposed …

I synthesize and discuss academic research on financial statement analysis and earnings
forecasting. I begin by discussing analytical and empirical evidence that shows that …

The main purpose of this study was to explore the relationship between market and
accounting measures of risk and the profitability of companies listed on the Frankfurt Stock …

The literature on cash flow or earnings beta is theoretically well-motivated in its use of
fundamentals, instead of returns, to measure systematic risk. However, empirical measures …