stock returns and that higher profitability and traditional value are both associated with higher chosen risk exposure …. Capital investment and utilization predict profitability and future returns. Empirically, utilization approximated by …

The level of firm investment, along with firm profitability, has been shown to be empirically powerful asset pricing … French (2014a), both rely on factors capturing the interrelationship of firm investment and profitability. The models … struggle in relation to small, high-investing and low-profitability stocks, a characteristic that is common to Australian firms …

) and find that a modified MF which uses gross profits as a measure of profitability yields significant abnormal returns for …

back on work in industrial organization, we analyze the relationship between profit persistence and expected stock returns …. We show that long-run profit persistence together with other additional economic firm fundamentals have a significant …