Most pricing and hedging models rely on the long run temporal stability of a sample covariance matrix. Using a large dataset of equity prices from four countries, the US, UK, Japan and Germany, we test the rolling stability of realized sample covariance matrices using two complementary...

Using data from 20 OECD countries, we find that firms with greater organization capital have significantly higher stock returns and that this represents an international phenomenon. We also find new evidence that the positive association between organization capital and stock returns increases...