Assessment of Effect of Risk Factors on Common Stock Risk Premium
One important factor that affects investment decisions is return of investment. On the other hand, risk factors measurement in the stock market is highly important to determine cost of capital and to assess investment. Therefore, exploring a perfect collection of the aspects that covers all financia...
| Format: | Article |
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| Language: | fas |
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Shahid Bahonar University of Kerman
2013-08-01
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| Series: | مجله دانش حسابداری |
| Subjects: | |
| Online Access: | https://jak.uk.ac.ir/article_557_f57064b8624bd8f0c44ad1dbce20c967.pdf |
| _version_ | 1818899959631577088 |
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| collection | DOAJ |
| description | One important factor that affects investment decisions is return of investment. On the other hand, risk factors measurement in the stock market is highly important to determine cost of capital and to assess investment. Therefore, exploring a perfect collection of the aspects that covers all financial positions of an entity provides investors main requirements and results in prosperity of the capital market.
The research data was analyzed by multiple liner regression. Results showed that there is a significant relationship between risk premium and some risk factors (standard deviation of earning, positive earning, interest rate variability, debt value to market value, distress, B/P ratio) at the companies level. Also, research results at different industries level showed that in each industry risk premium was affected by some of these factors. Relationship between the explored indicators in this research and risk premium (except the expected earnings growth) was verified. |
| first_indexed | 2024-12-19T19:56:15Z |
| format | Article |
| id | doaj.art-b36eeed4cb324e5b8255031dc6a5332a |
| institution | Directory Open Access Journal |
| issn | 2008-8914 2476-292X |
| language | fas |
| last_indexed | 2024-12-19T19:56:15Z |
| publishDate | 2013-08-01 |
| publisher | Shahid Bahonar University of Kerman |
| record_format | Article |
| series | مجله دانش حسابداری |
| spelling | doaj.art-b36eeed4cb324e5b8255031dc6a5332a2022-12-21T20:07:48ZfasShahid Bahonar University of Kermanمجله دانش حسابداری2008-89142476-292X2013-08-01413537410.22103/jak.2013.557557Assessment of Effect of Risk Factors on Common Stock Risk PremiumOne important factor that affects investment decisions is return of investment. On the other hand, risk factors measurement in the stock market is highly important to determine cost of capital and to assess investment. Therefore, exploring a perfect collection of the aspects that covers all financial positions of an entity provides investors main requirements and results in prosperity of the capital market. The research data was analyzed by multiple liner regression. Results showed that there is a significant relationship between risk premium and some risk factors (standard deviation of earning, positive earning, interest rate variability, debt value to market value, distress, B/P ratio) at the companies level. Also, research results at different industries level showed that in each industry risk premium was affected by some of these factors. Relationship between the explored indicators in this research and risk premium (except the expected earnings growth) was verified.https://jak.uk.ac.ir/article_557_f57064b8624bd8f0c44ad1dbce20c967.pdf: cost of capitalriskinvestment returns |
| spellingShingle | Assessment of Effect of Risk Factors on Common Stock Risk Premium مجله دانش حسابداری : cost of capital risk investment returns |
| title | Assessment of Effect of Risk Factors on Common Stock Risk Premium |
| title_full | Assessment of Effect of Risk Factors on Common Stock Risk Premium |
| title_fullStr | Assessment of Effect of Risk Factors on Common Stock Risk Premium |
| title_full_unstemmed | Assessment of Effect of Risk Factors on Common Stock Risk Premium |
| title_short | Assessment of Effect of Risk Factors on Common Stock Risk Premium |
| title_sort | assessment of effect of risk factors on common stock risk premium |
| topic | : cost of capital risk investment returns |
| url | https://jak.uk.ac.ir/article_557_f57064b8624bd8f0c44ad1dbce20c967.pdf |