Many believe that compensation, misaligned from shareholders' value due to managerial
entrenchment, caused financial firms to take risks before the financial crisis of 2008. We …

We argue that the empirical evidence against the capital asset pricing model (CAPM) based
on stock returns does not invalidate its use for estimating the cost of capital for projects in …

This paper studies how expected returns interact with product market competition. The
model predicts that (1) competition erodes markups, such that firms are more exposed to …

I document a positive relationship between corporate excess cash holdings and future stock
returns. The difference in returns of portfolios of high and low excess cash firms amounts to …

I review the state of empirical asset pricing devoted to understanding cross-sectional
differences in average rates of return. Both methodologies and empirical evidence are …

A major problem in finance is to understand why different financial assets earn vastly
different returns on average. In this paper, we survey various econometric approaches that …

This article rationalizes empirical patterns of market leverage, book leverage, book-to-
market ratios, and stock returns across different book-to-market portfolios, using a model of …

Este trabalho apresenta o impacto no custo de capital próprio para as empresas brasileiras
de capital aberto face à adoção dos princípios de sustentabilidade. O conceito de …

A model has been developed for the optimization of the share structure of an investment
portfolio in high-tech projects supported by the leaders of the leading industry companies in …

Evaluating the economic attractiveness of large projects often requires the development of
large and complex financial models. Model complexity can prevent management from …