Risk is a vital concept to grasp when investing in a firm or project. It is also a key ingredient required to evaluate … debt financing employed, must be accounted for to correctly assess a project’s risk.There are different measures of risk … used by practitioners. The most widely used risk measure corporate finance is CAPM beta. It can be calculated as the co …

We propose a new approach that reconciles traditional working capital management with risk management principles. By … extending the traditional working capital approach, we develop a risk-adjusted working capital model. We examine the … regression, we find mixed evidence supportive of the risk-adjusted working capital model. Sectoral analysis reveals heterogeneous …

between policy uncertainty and corporate risk-taking. We show that high levels of policy uncertainty are associated with … to their own firm and by reducing firm-level risk-taking. Furthermore, our results support the hypothesis that CEO risk …

by introducing a variable “policy-risk-induced equity return” (PRER). The results show that it is the equity market that … negatively (positively) the leverage target, conforming to the market-timing theory. EPU and non-policy uncertainty shocks cause …

When firms approach distress, whether they engage in asset substitution (risk shifting) or rebuild equity (risk …. Consistent with the importance of capital constraints, stock companies issue new equity following a negative shock, while mutual …

After critiquing arguments and evidence associated with the trade-off theory, the pecking order model, and the market …