Capital Productivity and Value Creation Trends
The Value Creation of Capital This article examines long-term macro trends in capital productivity, the cost of capital, and equity market value creation. The analysis is based on my Master’s thesis, which studies how firm-level economic value creation relates to investment outcomes over time. Defining Value Creation Value creation – often referred to as Economic…
Read more
The Value-Creation Pricing Factor: Improving the Fama-French Five-Factor Model
Master’s Thesis: Improve the Fama-French Five Factor Model ? The Value-Creation Pricing Factor is a metric derived from the distance between a company’s return on capital and its cost of capital. This article summarizes the core idea of the Value-Creation Pricing Factor, as introduced in my Master’s thesis on improving the Fama-French five-factor model. What…
Read more