I explore the implications for asset prices and macroeconomic dynamics of shocks that improve real investment opportunities and thus affect the representative household’s marginal utility. These investment shocks generate differences in risk premia due to their heterogeneous impact on firms:...

We develop a firm specific measure of growth opportunities based on the covariance of the firm's stock return with a portfolio that is long investment and short consumption producers (IMC). Given that firms with high growth opportunities are the prime beneficiaries of investment-specific shocks,...

This paper studies the unique risk characteristics of organization capital. Using a stock measure of organization capital based on readily available accounting data, we find that firms with more organization capital relative to their industry peers outperform firms with less organization capital...