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Cited by 363

The DOI matches its Crossref record; 33 of the 33 references it cites were found in a registry or an index.

Asset Pricing Implications of Nonconvex Adjustment Costs and Irreversibility of Investment

Open access
COOPER, ILAN·2006·The Journal of Finance
DOI 10.1111/j.1540-6261.2006.00832.x
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Abstract

This paper derives a real options model that accounts for the value premium. If real investment is largely irreversible, the book value of assets of a distressed firm is high relative to its market value because it has idle physical capital. The firm's excess installed capital capacity enables it to fully benefit from positive aggregate shocks without undertaking costly investment. Thus, returns to equity holders of a high book‐to‐market firm are sensitive to aggregate conditions and its systematic risk is high. Simulations indicate that the model goes a long way toward accounting for the observed value premium.

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Crossref · 10.1111/j.1540-6261.2006.00832.x

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Metadata

Authors
COOPER, I.
Venue
The Journal of Finance
Publisher
Wiley
Published
2006-01-20
Volume
61
Issue
1
Pages
139-170
ISSN
  • 0022-1082 (ISSN-L)
  • 1540-6261
DOI
10.1111/j.1540-6261.2006.00832.x
OpenAlex
W2152216902
Cited by
363
References
33
FWCI
26.11
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: Asset Pricing Implications of Nonconvex Adjustment Costs and Irreversibility of Investment. https://app.cochat.ai/papers/10.1111/j.1540-6261.2006.00832.x
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COOPER, I. (2006). Asset Pricing Implications of Nonconvex Adjustment Costs and Irreversibility of Investment. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.2006.00832.x

Data sources

Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.