Aug 2026· Annual Review of Financial Economics· 0 citations
Abstract
This article surveys evidence on the evolution of the capital share—the portion of output accruing to firm owners as after-tax profits—and its contribution to asset prices, arguing that capital share risk is a dominant driver of equity values. Using aggregate data on the US corporate sector, we show that the capital share has more than doubled since the late 1980s, driven primarily by a falling labor share. These changes have passed through nearly one-for-one into higher corporate payouts and help explain the long-run divergence between growth in the value of the stock market and real economic activity. Our review summarizes existing research on the measurement and structural consequences of movements in the capital share and outlines open questions about its empirical properties and endogenous links to macroeconomic variables. In sum, capital share risk is essential to understanding asset pricing dynamics in the modern economy.
This article analyzes the current situation on the Russian stock market, characterized by negative dynamics in key indices, declining share prices of major issuers, and growing tensions in the corporate debt segment. The reasons for the precipitous decline in individual company shares are examined, related to dividend...
E. I. Luneva· EKONOMIKA I UPRAVLENIE: PROB...· 0 citations
This paper studies how changes in interest rates affect borrowing cost, profitability and investment decisions. It also checks, at a descriptive level, whether Indian inflation and policy-rate data for 2010-2020 support the Fisher Effect. The two company cases are constructed examples, so they are used to explain mecha...
Shauryaa Goel· International Journal of Sci...· 0 citations
Empirical evidence on the real effects of stock price manipulation remains scarce. We identify suspicious market manipulation in China's stock market by applying a detection model for closing‐price manipulation and by using the 2018 reform of the Shanghai Stock Exchange's closing auction mechanism as an exogenous pol...
J. Jiang, Jie Liu, Chonglin Wu et al.· Journal of Business Finance...· 0 citations
This review surveys the literature on the macroeconomics of market power. Since 1980 various aggregate measures of market power, such as markups, profit rates, and market capitalization, have increased in the United States and around the globe. We find that the rise of markups is due in large part to the reallocation o...
Jan de Loecker, Jan Eeckhout· Annual Review of Economics· 2 citations
This paper investigates the impact of capital age on the cross-section of stock returns in the Chinese stock market. Based on portfolio sorting and Fama‑MacBeth regressions, we find a significant premium for stocks with low capital age, with monthly risk‑adjusted returns that are 0.42%-0.49% higher than those of stocks...
Jia-Bei Dong, Xuan-Shu Zhang, Xuan Cheng· Highlights in Business, Econ...· 0 citations
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