The DOI matches its Crossref record; 13 of the 13 references it cites were found in a registry or an index.
The Corporate Cost of Capital and the Return on Corporate Investment
Open accessAbstract
We estimate the internal rates of return earned by nonfinancial firms on (i) the initial market values of their securities and (ii) the cost of their investments. The return on value is an estimate of the overall corporate cost of capital. The estimate of the real cost of capital for 1950–96 is 5.95 percent. The real return on cost is larger, 7.38 percent, so on average corporate investment seems to be profitable. A by‐product of calculating these returns is information about the history of corporate earnings, investment, and financing decisions that is perhaps more interesting than the returns.
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Citations
Cites
Determinants of corporate borrowing
Myers, S. C. (1977) · Journal of Financial Economics · doi:10.1016/0304-405x(77)90015-0 · Cited by 13,169
Fama, E. F., & French, K. R. (1997) · Journal of Financial Economics · doi:10.1016/s0304-405x(96)00896-3 · Cited by 5,669
Self-citationMehra, R., & Prescott, E. C. (1985) · Journal of Monetary Economics · doi:10.1016/0304-3932(85)90061-3 · Cited by 5,535
Principles of Corporate Finance.
Stapleton, R. C., Brealey, R., & Myers, S. (1981) · The Journal of Finance · doi:10.2307/2327568 · Cited by 3,634
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Valuation: Measuring and Managing the Value of Companies.
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Testing Tradeoff and Pecking Order Predictions About Dividends and Debt
Fama, E. F., & French, K. R. (1999) · SSRN Electronic Journal · doi:10.2139/ssrn.199431 · Cited by 1,140
Self-citationInvestment–Cash Flow Sensitivities: Constrained versus Unconstrained Firms
MOYEN, N. (2004) · The Journal of Finance · doi:10.1111/j.1540-6261.2004.00692.x · Cited by 1,041
Evaluating the performance of value versus glamour stocks The impact of selection bias
Chan, L. K. C., Jegadeesh, N., & Lakonishok, J. (1995) · Journal of Financial Economics · doi:10.1016/0304-405x(94)00818-l · Cited by 226
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Cited by
Do retail trades move markets?
Barber, B. M., Odean, T., & Zhu, N. (2009) · Review of Financial Studies · doi:10.1093/rfs/hhn035 · Cited by 903
Determinants and Effects of Corporate Lobbying
Hill, M. D., Kelly, G. W., Lockhart, G. B., & Van Ness, R. A. (2013) · Financial Management · doi:10.1111/fima.12032 · Cited by 266
Metadata
- Authors
- Fama, E. F., & French, K. R.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 1999-12
- Volume
- 54
- Issue
- 6
- Pages
- 1939-1967
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W3122119032
- Cited by
- 253
- References
- 13
- FWCI
- 23.69
- Type
- journal article
- Language
- en
- Open access
- green
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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