"Momentum is consistent with value maximization of firms. The neoclassical theory of investment implies that expected stock returns are connected with expected marginal benefits of investment divided by marginal costs of investment. Winners have higher expected growth and expected marginal...

The relation between a firm's stock return and its intangible assets is derived under the intangible-asset-augmented q-theory framework. The structural estimation of the model leads to four main results. First, the q-theory augmented with intangible investments captures the value premium and the...

Models of political risk predict that increases in political uncertainty cause stock prices to fall, especially for politically sensitive firms. We use the event of the Bo Xilai political scandal in 2012 in China as an exogenous shock to identify the impact of political uncertainty on asset...