1. We test the downward slopping equity term structure in an environment of negative interest rate. 2. We improve the measure of equity duration proposed by \citet*[][]{dechow2004}. 3. We show that the “short-duration” factor improves the performance of factor models. 4. We show that...

In contrast to prior equity market results, we document that corporate bonds issued by low profitability firms outperform bonds issued by highly profitable firms. This performance difference is primarily driven by low profitability, low credit rating firms. This profitability premium is...

The literature on income smoothing focuses on the effect of earnings smoothing on the equity market. This paper investigates the effect of income smoothing on the debt market. Using the Tucker-Zarowin (TZ) statistic of income smoothing, we find that firms with higher income smoothing rankings...