Price of regulations: Regulatory costs and the cross-section of stock returns
dc.contributor.author | Ince, B. | |
dc.contributor.author | Özsöylev, Han Nazmi | |
dc.date.accessioned | 2024-02-26T08:45:42Z | |
dc.date.available | 2024-02-26T08:45:42Z | |
dc.date.issued | 2024-01 | |
dc.identifier.issn | 2045-9920 | en_US |
dc.identifier.uri | http://hdl.handle.net/10679/9223 | |
dc.identifier.uri | https://academic.oup.com/raps/advance-article/doi/10.1093/rapstu/raae001/7515258 | |
dc.description.abstract | Regulations introduce significant fixed costs and add to operating leverage. Fixed regulatory costs that contribute to operating leverage should generate a risk premium. To explore whether such a premium exists, we introduce a measure of "regulatory operating leverage" that reflects the importance of fixed regulatory costs in a firm's cost structure. Regulatory operating leverage predicts stock returns in the cross-section, and a zero-cost high-low regulatory operating leverage strategy generates positive and significant risk-adjusted return. Finally, the impact of regulatory operating leverage on returns is due to the (systematic) risk contribution of fixed regulatory costs. | en_US |
dc.description.sponsorship | TÜBİTAK ; Science Foundation Ireland | |
dc.language.iso | eng | en_US |
dc.publisher | Oxford University Press | en_US |
dc.relation | info:turkey/grantAgreement/TUBITAK/117K248 | |
dc.relation.ispartof | The Review of Asset Pricing Studies | |
dc.rights | openAccess | |
dc.rights | Attribution 4.0 International | |
dc.rights.uri | https://creativecommons.org/licenses/by/4.0/ | |
dc.title | Price of regulations: Regulatory costs and the cross-section of stock returns | en_US |
dc.type | Article | en_US |
dc.description.version | Publisher version | en_US |
dc.peerreviewed | yes | en_US |
dc.publicationstatus | Published online | en_US |
dc.contributor.department | Özyeğin University | |
dc.contributor.authorID | (ORCID 0000-0001-7761-8317 & YÖK ID 106921) Özsöylev, Han Nazmi | |
dc.contributor.ozuauthor | Özsöylev, Han Nazmi | |
dc.identifier.wos | WOS:001143230600001 | |
dc.identifier.doi | 10.1093/rapstu/raae001 | en_US |
dc.subject.keywords | G12 | en_US |
dc.subject.keywords | G18 | en_US |
dc.subject.keywords | G28 | en_US |
dc.relation.publicationcategory | Article - International Refereed Journal - Institutional Academic Staff |
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