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Asset pricing literature shows that higher operating leverage relates to higher expected stock returns (e.g. Novy-Marx (2011)). We show that higher OL explains higher expected stock returns only when returns to scale are high. This finding is new. When returns to scale are high, OL is positive...
Persistent link: https://www.econbiz.de/10013006471
This study examines the determinants of profitability using the US Compustat database during the period 1976-2009. The …. Besides the conventional drivers of profitability a relatedness measure of technology based on patents is explored too, in … business lines and production chains. The drivers of profitability in lags are examined in order to account for their …
Persistent link: https://www.econbiz.de/10012856216
estimated profit efficiency. However, compared with cost inefficiency, revenue inefficiency affects more overall profitability …This paper presents new evidence regarding the relation between profit, revenue, and cost efficiencies of U ….S. commercial banks. Building on the widely used nonstandard profit function (NSPF) approach, we show (i) why estimation of NSPF …
Persistent link: https://www.econbiz.de/10013059150
one where production per unit of profit of non-financial corporations is lower than in competitive mass production and … profit share is not an increasing function of capacity utilisation. Rather the desired excess capacity is higher compared … since the break-even point where total costs and revenues equalize tends to be lower. The argument is supported with …
Persistent link: https://www.econbiz.de/10012628047
inapplicable. Instead, we require observation of profits or other optimizing-values such as costs or revenues, and either prices or …
Persistent link: https://www.econbiz.de/10013220862
. Instead, we require observation of profits or other optimizing-values such as costs or revenues, and either prices or price …
Persistent link: https://www.econbiz.de/10013254565
estimated. Using the full rainfall distribution and our profit function estimates, we find that Indian farmers on average under … expected profits. Farmers who use skilled forecasts have increased average profit levels but also have more variable profits …
Persistent link: https://www.econbiz.de/10013078029
The paper aim is to verify industry sensitivity to changes in production volumes (sales). Sensitivity confirmation is not based on the data describing economic downturn but on permanent internal industry factors. Internal factors take into consideration cost dependency on changes in output...
Persistent link: https://www.econbiz.de/10014440815
decomposes unobserved heterogeneity in profitability into firm and industry effects and quantifies the relative importance of …, significantly enhances profitability, but also that this relationship is not identical among firms …
Persistent link: https://www.econbiz.de/10013141556
Family business literature shows that family and nonfamily firms differ with respect to their financial reporting decisions. However, although the literature on financial reporting in fami - ly firms has developed over the last ten years, it is mostly oriented towards earnings management and...
Persistent link: https://www.econbiz.de/10012434235