The other side of value: The gross profitability premium.

By Robert Novy-Marx. 2013

1,740 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/93dddbb885ee75b189b0dab6ce3a7db474d5016c

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Citations in the corpus

Responsible investing: The ESG-efficient frontier (2020, positive): “In Panel A, we consider the “accounting rate of returns,” defined as the return on net operating assets as in Richardson et al. (2006); and in Panel B, gross profitability over assets defined as in Novy-Marx (2013) and computed as (revenue minus cost of goods sold) over total assets.”
Investment and the Weighted Average Cost of Capital (2016, positive): “When the CAPM, or a related factor model,1 is used to infer the cost of equity, the 1We examine the factors of Fama and French (1993), Carhart (1997), Kogan and Papanikolaou (2013), and Novy-Marx (2013).”
Geographic Lead-Lag Effects (2020, positive): “Following Harvey, Liu, and Zhu (2016) and Novy-Marx (2013), we use these main control variables: the firm’s own one-month lagged return, individual stock 12-months momentum, firm size, bookto-market ratio, trading volume, gross profitability, asset growth and institutional ownership.”
The Characteristics that Provide Independent Information about Average U.S. Monthly Stock Returns (2017, neutral): “27 Novy-Marx, R. (2012). The other side of value: The gross profitability premium.”
The five-factor asset pricing model tests for the Chinese stock market (2017, neutral): “1 See, e.g., Fairfield et al. (2003), Titman et al. (2004), Fama and French (2006, 2008a), Aharoni et al. (2013) and Novy-Marx (2013). http://dx.doi.org/10.1016/j.pacfin.2017.02.001 0927-538X/© 2017 Elsevier B.V.”
A diagnostic criterion for approximate factor structure (2016, methodology): “Besides, the monthly returns of industry-adjusted value, momentum and profitability factors are available from the website of Robert NovyMarx (see Novy-Marx (2013)).”
Are Financial Constraints Priced? Evidence from Textual Analysis (2018, neutral): “3See, for example, Hou, Xue, and Zhang (2015) for investment; Ritter (1991), Ikenberry, Lakonishok, and Vermaelen (1995), Loughran and Ritter (1995), Daniel and Titman (2006), Fama and French (2008), Pontiff and Woodgate (2008), McLean, Pontiff, and Watanabe (2009), and Greenwood and Hanson (2012) f”
Flights to Safety (2014, background): “While quality is not as easily defined for equities as for corporate bonds, most studies use one or more variables that capture firm profitability, safety, and earnings quality (see e.g. Graham (1973), Piotroski (2000), Novy-Marx (2013), Asness et al. (2018)).”