The Black’s leverage effect hypothesis postulates that a negative stock return innovation increases the financial leverage of a firm since the value of equity decreases at a given level of debt, which, in turn, creates a higher equity return volatility in the future. The paper is aimed at...

Beta has been a controversial measure of risk ever since it was proposed almost half a century ago, and we do not pretend to settle with this article what decades of research has not. We do, however, take advantage of the recent trend of investing in countries and industries through index funds...

This research examines the association between Black Economic Empowerment (BEE) score and shareholder return. We look at the effect of a change in BEE score on abnormal returns for shareholders, as well as at the long term performance of holding portfolios ranked on BEE score. The study takes...