Economic Value Added (EVA™) and competing metrics are a leitmotif for management, strategy consultants and Wall Street. Such metrics, the synthesis of M&M proposition III and the notion of residual income, form the scholarly framework on value creation. However, the empirical evidence is poor,...

We investigate whether and how firms manage their rollover risk by having a dispersed bond maturity structure (granularity). Granularity can be achieved or maintained by frequently issuing sets of bonds with different maturities. We find that firms with higher granularity have higher...

In investment appraisal, uncertainty can be managed through intervals or fuzzy numbers because the arithmetical properties and the extension principle are well established and can be successfully applied in a rigorous way. We apply interval and fuzzy numbers to the Average Internal Rate of...

The Fama-French factors are ubiquitous in empirical finance, industry, and law. We find that factor returns differ substantially depending on when the data were downloaded. The effects of these retroactive changes are large. Holding the sample period constant and varying only factor vintages, we...

Using data from a decade of surveys of corporate managers, I find evidence that firms with higher expected stock returns have a higher perceived cost of equity and use higher discount rates in capital budgeting. Variation in expected stock returns, as measured by exposure to equity risk factors,...

Fully expensing intangible investments has potential distorting effects on factor investing based on book-to-market, investment, and profitability. Incorporating intangible investment/capital into the conceptual frameworks and empirical factor models of Fama and French (1993, 2015) and Hou, Xue...

The objectives of this article are threefold: (1) shed light on the magnitude of the pension underfunding problem and the possible dire impact on enterprise value; (2) remind appraisers of the need to thoroughly understand and evaluate pension plan economics or engage someone to assist them; and...

Many previous studies document a positive relation between research and development (Ramp;D) and equity value. Though Ramp;D can increase equity value by increasing firm value, it can also increase equity value at the expense of bondholder wealth through an increase in firm risk because equity...

We find that business cycles drive productive economic churn. During recessions, firms with high previous abnormal investment scale back while firms with low abnormal investment scale up. These findings are consistent with an improvement in investment efficiency over the business cycle. Our...

This paper examines the market reaction to a press release issued by Intel on Thursday, September 21, 2000. In response to that release, Intel's stock price dropped 30 percent, erasing over $120 billion of shareholder wealth. By analyzing the press release in conjunction with analyst reports and...