We develop a firm valuation model with repeated expansion and contraction options to show operating profitability is a … as profitability falls, lowering the firm beta. Consistent with the predictions, operating profitability relates … losers with diverging operating profitability. Corroborating a risk-based explanation, the momentum results remain …

In this paper, after controlling for the level of R&D expenditures, I find that profitability of R&D intensive firms is …&D-to-market value variable becomes insignificant even when not controlling for the firm's profitability. Since quarterly profits are … lower not higher subsequent returns, once I control for the level of R&D expenditures and firm's profitability. The …

article, we perform a sensitivity analysis of the pairs trading profitability to its parametrization, employing the daily …

transaction costs are taken into account. We show that the impact of transaction costs on the strategies' profitability can …

transaction costs are taken into account. We show that the impact of transaction costs on the strategies' profitability can …

explained by the new Fama-French five-factor model, which includes a profitability factor. We argue that this conclusion is …

valuation. In our empirical application, we use 𝑄 to relate analyst forecasts to stock returns and measure the profitability of …

We find profitability measures fail to explain future stock returns of China's A-shares. In addition, although … profitability growth significantly and positively correlates with the cumulative stock return in the following year, profitability … measures do not predict profitability growth, suggesting the lack of profitability sustainability helps explain the missing …