...Luis García-Feijóo; Tyler K. Jensen; Paul D. Koch ABSTRACT We document time-varying interrelations between aggregate funding conditions and the impact of operating leverage (OL) on stock returns. OL represents a primitive source of risk, which helps explain the well established unconditional...

...Sanjeev Bhojraj; Robert J. Bloomfield; Youngki Jang; Nir Yehuda ABSTRACT We provide evidence that credit investors do not fully impound the implications of firms' cost structure (or operating leverage) when pricing credit default swaps. Information about firms' cost structure is not disclosed...