We study the effect of financial constraints on risk and expected returns by extending the investment-based asset pricing framework to incorporate retained earnings, debt, costly equity, and collateral constraints on debt capacity. Quantitative results show that more financially constrained...

In a frictionless world, investment is perfectly elastic to changes in the discount rate. With financial frictions, investment is less elastic, meaning that a given magnitude of change in investment is associated with a higher magnitude of change in the discount rate. Equivalently, investment is...

The q-theory explanations of asset pricing anomalies are quantitatively important. We perform a new asset pricing test by using GMM to minimize the difference between average stock returns in the data and average investment returns constructed from observable firm characteristics. Under various...

Studying farmland evaporative fraction (EF) plays an important role in interpreting the components of energy budget and evapotranspiration (ET). The present study examines the pattern of vineyard EF after monitoring energy components by eddy covariance for 2 years, and estimates the crop ET by...

Spring maize under plastic mulch is the staple food crop in northwest China. Studying its evapotranspiration (ET) and crop coefficient (Kc) is important for managing water-saving irrigation in the region. Eddy covariance (EC) was applied to measure spring maize ET in 2007 in northwest China,...

In this paper, a two-dimensional (2D) dynamic model of root water uptake was proposed based on soil water dynamic and root dynamic distribution of grapevine, and a function of soil evaporation related to soil water content was defined under alternate partial root-zone drip irrigation (APDI)....