Docherty, Paul; Chan, Howard; Easton, Steve - In: Accounting and Finance 50 (2010) 4, pp. 809-827
Zhang (2005) and Cooper (2006) provide a theoretical risk-based explanation for the value premium by suggesting a nexus between firms' book-to-market ratio and investment irreversibility. They argue that unproductive physical capacity is costly in contracting conditions but provides growth...