We develop a firm valuation model with repeated expansion and contraction options to show operating profitability is a … as profitability falls, lowering the firm beta. Consistent with the predictions, operating profitability relates … losers with diverging operating profitability. Corroborating a risk-based explanation, the momentum results remain …

profitability. In this study, we examine the impact of capital requirements on the cost of financial intermediation and bank … profitability using a panel dataset of 32 Bangladeshi banks over the period from 2000 to 2015. By employing a dynamic panel … of financial intermediation and increase bank profitability. The results hold when we use equity to total assets ratio as …

Operating leverage increases profitability and reduces optimal financial leverage. Thus, operating leverage generates a … negative relation between profitability and financial leverage that is thought to be inconsistent with the trade-off theory …, but is commonly observed in the data. We demonstrate the effect of operating leverage on firms' profitability and …

paper, we show that frictions in the labour market leading to monitoring costs tend to reduce the growth of the firm via two … to both frictions in the credit and labour markets. -- entrepreneurship ; monitoring costs ; credit constraint …

paper, we show that frictions in the labour market leading to monitoring costs tend to reduce the growth of the firm via two …

), the same noncooperative interaction often inadvertently raises their joint profits. Profit effects depend on how the well … disparate profit effects, and to synthesize the literature on strategic delegation and vertical control. The optimal way to …

In this paper, we investigate the relation between business profit and the demand price-elasticity of consumers …. Business profit increases with a decrease in customer price-sensitivity only when the relation between a firm's net operating … margin (after fixed-costs) and its price-cost margin (before fixed-costs) exceeds unity. We find this result empirically for …

This paper presents an empirical analysis of the distributional and dynamic properties of firm profit rates, measured … key parameters ruling over the distributional outcome and stochastic motion of firm profit rates: a system-wide aver- age … rate of profit, a system-wide dispersion measure of profit rates, and an idiosyncratic noise factor reecting individual …

windfall profits and provide an impulse for further price hikes. (2) To protect profit margins from rising costs, downstream …