Evaluating and Improving Methods to Estimate the Implied Cost of Capital and Return Decompositions

Jörn van Halteren

Corpus ID: 156232431

Evaluating and Improving Methods to Estimate the Implied Cost of Capital and Return Decompositions

@inproceedings{Halteren2011EvaluatingAI,
  title={Evaluating and Improving Methods to Estimate the Implied Cost of Capital and Return Decompositions},
  author={J{\"o}rn van Halteren},
  year={2011}
}

Jörn van Halteren

Published 2011

Economics

The dissertation analyzes existing accounting-based methods to measure expected stock returns and proposes methodological advances to improve expected return estimation. The primary object of study are methods that estimate the implied cost of equity capital (ICC). The analysis includes a simulation study to provide direct evidence concerning the quality of existing ICC methods in capturing the true cost of capital. The analysis shows that the structure of the underlying valuation models is a… CONTINUE READING