This paper contains a brief discussion of shareholders' equity in the company. Equity is the owner's right to the company's assets after all obligations are paid. The equity of a company can be calculated by subtracting the company's liabilities from the company's total assets. In other words,...

This study aims to analyze and test empirically the influence of corporate financial performance against systematic risk on stocks. The analysis technique used is multiple linear regression. The results showed that the financial performance did not significantly affect the systematic risk of the...

Because levered equity is an option on the firm, variations in asset idiosyncratic risk (ivol) induces a negative relationship between equity ivol and expected returns. We show that the effect is caused by the nonlinear payoff of equity and the law of one price, and is present in all but...