TITLE

AN EMPIRICAL STUDY OF ACCOUNTING AND MARKET MEASURES: RISK VERSUS RETURNS

AUTHOR(S)
Anantharaman, Sekhar; Kline, Germain P.
PUB. DATE
September 2008
SOURCE
Review of Business Research;2008, Vol. 8 Issue 4, p93
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Parametric statistical tests on a select sample of NYSE stocks over the 1997-2006 period support the belief that corporations that have a higher than market adjusted beta, on average, yield greater accounting returns than those with lower than market adjusted beta. Corporations under risk classes measured by another market measure (unadjusted beta) and two book measures (financial leverage and interest coverage capacity) do not exhibit any significant differences in both accounting and market rates of return. On the other hand, nonparametric analyses of the same data provides support only to the belief that corporations that have a lower (less than 4 times) interest coverage ratio (more risky), on average, yield greater accounting returns than companies with a higher (greater than or equal to 4 times) interest coverage ratio (less riskier).
ACCESSION #
35601372

 

Related Articles

  • Yields Attract Investors Back Into Market. Platt, Gordon // Global Finance;Dec2011, Vol. 25 Issue 11, p87 

    The article reports on the move of investors to go back into the high-yield corporate bond market in mid-October 2011 to take advantage of low prices and spreads to Treasury bonds of 900 basis points after market yields are nearing 10% in the U.S. It mentions that the present high-yield...

  • Indexes, Leaders Are Routed. Investor's Business Daily // Investors Business Daily;8/7/2015, pA01 

    1 The Nasdaq slid 1.6% ahead of Fri.'s jobs report, hurt by solar, biotech and security software stocks. The S&P 500 lost 0.8% as

  • A note on the relation between the equity risk premium and the term structure. Kanas, Angelos // Journal of Economics & Finance;Jan2010, Vol. 34 Issue 1, p89 

    We show that nonlinearity in the relation between the equity premium and the slope of the term structure has two dimensions, namely asymmetry between positively and negatively sloped term structures, and regime switching. Asymmetry is uncovered only if volatility regime switching is allowed in...

  • Our utilities win for 4th year.  // Dow Theory Forecasts;2/13/2012, Vol. 68 Issue 7, p1 

    The article presents an overview of the Top 15 Utilities Portfolio which has consistently delivered a total return of 38.8% since inception back in 2007 in the U.S. It mentions how it has outperformed the utility sector index. In addition, the issue of selling stocks, assessing the yield and...

  • Asset Pricing and the Credit Market. Longstaff, Francis A.; Wang, Jiang // Review of Financial Studies;Nov2012, Vol. 25 Issue 11, p3169 

    This article studies the central role of the credit market. We show that the credit market facilitates optimal risk sharing by allowing less risk-averse investors to take on levered positions and consume more risk. The equilibrium amount behaves procyclically when aggregate consumption is low...

  • The Stock-Bond Return Relation, the Term Structure’s Slope, and Asset-Class Risk Dynamics. Bansal, Naresh; Connolly, Robert A.; Stivers, Chris // Journal of Financial & Quantitative Analysis;Jun2014, Vol. 49 Issue 3, p699 

    We study whether asset-class risk dynamics can help explain the predominantly negative stock-bond return relation and movements in the term structure’s slope over 1997–2011. Using option-derived implied volatilities to measure risk, we find i) the negative stock-bond return...

  • Europe's Debt Woes Hit US High-Yield Market. Platt, Gordon // Global Finance;Nov2011, Vol. 25 Issue 10, p78 

    The article reports on the impact of the sovereign debt crisis in Europe on the financial market in the U.S. It mentions that debt woes in Europe has hit the U.S. much higher yields on lower-rated corporate bonds despite decline on government bonds. It notes that potential default by Greece has...

  • HIGH-YIELDERS UNDERPERFORM.  // Dow Theory Forecasts;12/14/2009, Vol. 65 Issue 50, p1 

    The article reports on the market performance of U.S. stocks with the highest yields since January 1990. Based in the 33 equal-numbered baskets by yield, tocks with the highest yields have underperformed the average dividend-paying stock. It also shows that basket 21 through 26 were the...

  • Future and Prospects of Bond Market Development in Pakistan: A Review. Nazir, Mian Sajid; Alam, Atia; Nawaz, Muhammad Musarrat // Interdisciplinary Journal of Contemporary Research in Business;Dec2010, Vol. 2 Issue 8, p256 

    Bond market development in the emerging economies is a challenge for issuers, intermediaries and regulators; particularly in South Asia, where the corporate capital raising is very much limited to bank loaning and issuance of equity stocks. There is a frantic need to disseminate apposite...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics