Operating Cost Flexibility and Implications for Stock Returns

This study suggests a new measure for a firm’s operating cost flexibility. Flexible firms are less risky and, therefore, require lower stock returns. This analysis of 126,202 firm-year observations from the U.S. cross-section of stock returns finds that the new measure explains a negative significan...

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Bibliographic Details

Published in:	Risks
Main Author:	Roi D. Taussig
Format:	Article
Language:	English
Published:	MDPI AG 2024-10-01
Subjects:	operating cost stock return asset pricing cross-section returns
Online Access:	https://www.mdpi.com/2227-9091/12/10/161