Emerging and frontier financial markets in the Asia-Pacific region have experienced significant changes in recent years in areas affecting regulation, market participants, and products. This collection presents perspectives from authors in local markets who provide their analysis of the history,...

Research showing that the lowest risk stocks tend to outperform the highest risk stocks over time has led to rapid growth in so-called low-risk equity investing in recent years. We examine the performance of the low-risk strategy previously considered in the literature and of a beta-neutral...

We use an international sample of 20 developed countries to test theories predicting an association between operating leverage with stock returns and the value premium. Results suggest that operating leverage is related to stock returns and the value premium across the sampled countries. These...

The model and simulations of Berk, Green, and Naik (BGN, 1999) suggest that exercise of growth options alters firm-specific characteristics such as firm size (MVE) and book-to-market ratio (B/M) commensurately with changes in systematic risk. Consistent with BGN, we show empirically that...