García-Feijóo, Luis; Jorgensen, Randy D. - In: Financial Management 39 (2010) 3, pp. 1127-1154
"Recent theoretical models (Carlson, Fisher, and Giammarino, 2004) predict an association between the book-to-market equity ratio (BE/ME) and operating leverage in the cross-section. Consistent with these models, we find a positive association between BE/ME and the degree of operating leverage...