Technological innovators are priced differently than other firms, earning high stock returns controlling for standard factors, with less punishment for high capital investment and weak profitability. We create the persistent new firm variable patent intensity (PI), patents received divided by...

I show that a firm's capital intensity determines the asset pricing implications of investment-specific technology shocks. Capital-intensive stocks sorted by exposure to the investment shock generate a highly significant abnormal return of up to 5% annually. This pattern of abnormal stock...

I examine the asset pricing implications of technological innovations that allow capital to displace labor: automation. I develop a theory in which firms with high share of displaceable labor are negatively exposed to such technology shocks. In the model, firms optimally adopt technology to gain...

I study how an investment shock affects different types of labor. I show that investment shocks are an important source of job displacement and labor income risk. I use geographical variation in labor routine intensity and show that investment shock have differential and long lasting effects on...

I examine the asset pricing implications of technological innovations that allow capital to displace labor: automation. I develop a theory in which firms with high share of displaceable labor are negatively exposed to such technology shocks. In the model, firms optimally adopt technology to gain...

I show that a firm's capital intensity affects the asset pricing implications of investment-specific technology shocks measured by a popular measure, the IMC porfolio. Capital-intensive stocks sorted by the exposure to this measure generate a highly significant average return premium of up to 5%...