the four HXZ factors, namely size, profitability, and investment, cannot be explained by the five FF factors; (4) the best … as follows: (1) neither the FF investment factor nor the HXZ investment factor earns a significant return in the Chinese … profitability factor; (5) the maximum Sharpe ratio is achieved by investing about 5% in the market factor, 20% in the value factor …

This paper examines the dynamic relationship among cash flow, R&D investment and profitability. Previous empirical … individual fixed effects. We find that the positive impact of R&D investment on profitability over the long term, which indicates … confirms the importance of R&D investment and financing constraint in improving firm profitability …