Previous studies have identified a negative relation between firms' hiring rates and future
stock returns in the cross-section. We document that this relation is significantly steeper in …

Average return differences among firms sorted on valuation ratios, past investment,
profitability, market beta, or idiosyncratic volatility are largely driven by differences in …

Although the academic literature on real options has grown enormously over the past three
decades, the adoption of formal real option valuation models by practitioners appears to be …

This paper studies the asset pricing implications of a firm's opportunities to replace routine‐
task labor with automation. I develop a model in which firms optimally undertake such …

Uncertainty over future business conditions lies at the heart of firm decision-making.
Uncertainty can arise from a myriad of sources and is difficult to measure. We present a …

Investment-based asset pricing research highlights the role of irreversibility as a determinant
of firms' risk and expected return. In a neoclassical model of a firm with costly scale …

This paper studies the relationship between firm value and a firm's growth options. We find
strong empirical evidence that Tobin's Q increases with firm‐level volatility. The significance …

We build an asset-pricing model with dynamic strategic competition to explain the strong
joint fluctuations in aggregate discount rates, competition intensity, profitability, and asset …

The literature documents heterogeneity in the delay of stock price reaction to systematic
shocks, implying that asset risk depends on investment horizon. We study the pricing of risk …

Long-term expected returns do not appear to vary in the cross section of stocks. We show
that even negligible persistent differences in expected returns, if they existed, would be easy …