We provide a new explanation for the profitability anomaly along with a battery of supportive empirical tests. Our … profitability and future stock returns, and the relation is stronger in firms with higher growth. The relation arises because less …

the ROE can be improved?6. The ROE depends on net profit margin, turnover of CE and financial leverage. When financial … Economic Profit (EP) and the Economic Value Added (EVA). What is the EP and what does it indicate? What is EVA an what does it …

stock performance (i.e., poor profitability) and whether adopting EVA leads to better stock performance (i.e., greater … profitability). There is insufficient evidence to conclude that poor stock performance leads firms to adopt EVA or that adopting EVA … improves stock performance. Firms that adopt EVA appear to have above average profitability relative to their peers both before …

stocks. While long-short (zero initial outlay) portfolios based on this signal usually make a profit on average, it is rarely …

We find that mutual funds holding a larger concentration of high gross profitability stocks generate better future … performance. The outperformance of these funds is not driven by a profitability-related risk premium and is not a byproduct of … profitability anomaly possess greater skill and create value by attracting future fund inflows and by growing fund assets under …