The Equity Premium in 150 Textbooks

Paper: SSRN 1473225

Abstract

I review 150 textbooks on corporate finance and valuation published between 1979 and 2009 by authors such as Brealey, Myers, Copeland, Damodaran, Merton, Ross,

Complexity vs Empirical Score

• Math Complexity: 1.0/10
• Empirical Rigor: 1.0/10
• Quadrant: Philosophers — conceptual discussion, limited math and data

Why this score: The paper is a survey of textbook definitions and historical discussion of the equity premium, containing minimal mathematical derivations and no backtests or empirical data analysis.

Research Flowchart

  flowchart TD
  A["Research Goal<br>Analyze Equity Premium in Textbooks"] --> B["Methodology<br>Review 150 Corp. Finance/Valuation Texts (1979-2009)"]
  B --> C["Data Inputs<br>Authors: Brealey, Myers, Damodaran, Merton, etc."]
  C --> D["Computational Process<br>Extract Cost of Capital & Capital Budgeting Methods"]
  D --> E["Key Findings<br>Determine Trends in Equity Premium Estimation"]