ABSTRACT We propose a new asset pricing framework in which all securities' signals predict each individual return. While the literature focuses on own‐signal predictability, assuming equal strength across securities, our includes cross‐predictability—leading to three main results. First, we derive optimal strategy closed form. It consists of eigenvectors “prediction matrix,” call “principal por...

This study analyzes the effect of corporate governance (CG) quality on principal-agent (PA) and principal-principal (PP) conflict in Indonesia while also controlling for potential endogeneity through use two-stage least squares (2SLS) regression. The results PA (measured by operating expense ratio asset utilization ratio) are consistent with notion that better CG leads to a lower level conflict...