explained by the new Fama-French five-factor model, which includes a profitability factor. We argue that this conclusion is …

Operating leverage (OL) and profitability are interrelated determinants of stock returns. We show that the … alternative profitability measures that treat OL differently. Our results extend research linking monetary policy, OL, and … profitability by documenting important time-varying interrelations among these characteristics and returns …

profitability of the strategies has significantly decreased recently, driven particularly by the disappearance of value and reversal …

valuation. In our empirical application, we use 𝑄 to relate analyst forecasts to stock returns and measure the profitability of …

enhanced in a way that not only survives common risk adjustments but also maintains profitability after trading costs. For our …

factors are linked with the level of insider profits which can explain why the profitability of insider trading differs …

stocks. While long-short (zero initial outlay) portfolios based on this signal usually make a profit on average, it is rarely …

Accruals are the non-cash component of earnings. They represent adjustments made to cash flows to generate a profit … returns increase in profitability and decrease in accruals. We show that cash-based operating profitability (a measure that … excludes accruals) outperforms measures of profitability that include accruals. Further, cash-based operating profitability …

, profitability, and investment premiums. One duration-factor captures the spread of returns between short and long durations, and the …

We provide a novel framework and empirical results to understand the relation between profitability growth and returns …. By connecting a concave profit function to a standard valuation framework, we argue that if growth-rate risk carries a … positive risk premium, firms with higher current profitability growth should earn higher average returns but this effect should …