While aggregate earnings should affect aggregate stock returns, standard portfolio theory predicts that the cross-sectional dispersion in firm-level earnings would not affect aggregate stock returns. Nonetheless, this paper demonstrates a surprisingly robust relation between cross-sectional...

This paper studies the effects of capacity utilization on accounting profit margins and stock returns. Since accounting profit margins represent the average profit per unit and not the economists' concept of unit contribution margin, the marginal/variable profit per unit, a firm with idle...

Significant increases in the incidence of global terrorism, serious criminal activities, and the ever-present threat of natural catastrophes have emphasised the need for businesses to prepare for managing crises. A more systematic and robust conceptual approach has long been overdue to identify...

Entre 2009 y 2014, los países de la OCDE han acometido un importante proceso de consolidación fiscal. En el presente trabajo examinamos el efecto de este proceso sobre la actividad económica. Los multiplicadores fiscales de corto plazo se estiman entre el 1,2 % y el 2 % del PIB, mayores que...

In this study, we seek to better understand the interest rate pass-through in five Central and Eastern European countries -- the Czech Republic, Hungary, Poland, Slovakia and Slovenia, the CEE-5. Our pass-through estimates for several retail rates are generally lower than those reported in the...