Does operating leverage explain the gross profitability premium?
نویسندگان
چکیده
منابع مشابه
Real Options and Risk Dynamics
We examine the asset pricing implications of a neoclassical model of repeated investment and disinvestment. Prior research has emphasized a negative relation between productivity and equity risk that results from operating leverage when capital adjustment is costly. In general, however, expansion and contraction options affect risk in the opposite direction: they lower equity risk as profitabil...
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