Textbook theory assumes that firm managers maximize the net present value of future cash flows. But when you ask them …, real-world firm managers consistently say that they are maximizing something else entirely: earnings per share (EPS …). Perhaps this is a mistake. No matter. We take firm managers at their word and show that EPS maximization provides a single …

Textbook theory assumes that firm managers maximize the net present value of future cash flows. But when you ask them …). Perhaps this is a mistake. No matter. We take managers at their word and show that EPS maximization provides a single unified …

We present an intertemporal consumption model of consumer investment in financial literacy. Consumers benefit from such … investment because their stock of financial literacy allows them to increase the returns on their wealth. Since literacy … depreciates over time and has a cost in terms of current consumption, the model determines an optimal investment in literacy. The …

Our research tests the difference in investment efficiency between state-owned enterprises (SOEs) and private firms and … then evaluates the effect of privatisation and equitisation policies on the investment efficiency of former state owned … spending. We find no evidence of investment spending being linked to marginal returns by SOEs across all sectors and size …

A detailed treatment of aggregation and capital heterogeneity substantially improves the performance of the investment … capital. The model fits well the value, momentum, investment, and profitability premiums simultaneously and partially explains … profitability premiums, as well as the countercyclical and long-term dynamics of the value and investment premiums. However, the …