firms and concludes that both the size and book-to-market effects are related to default risk. For example, small firms earn … higher return than big firms only if they have higher default risk and value stocks earn higher returns than growth stocks if … their default risk is high. In this paper we use a more advanced compound option pricing model for the computation of …

behaviour, aiming at investigating the impact of bank equity on the risk and return of Vietnamese commercial banks during the … larger capital buffers tend to take less risk but are less profitable. In addition, the study also finds a non …-linear relationship revealing that bank risk mitigates the effect of bank equity on profitability. Most estimations show strong robustness …