Firm-risk and managerial risk-taking though distinct are used interchangeably in empirical literature. Here, we identify these two distinctly by examining different proxies for them. We use income stream uncertainty accounting beta to proxy firm-risk, market risk capital intensity ratio represent risk-taking. Once defined, our objective is find the antecedents of both using most advanced struct...

We show that a simple structural model of credit risk is able to generate credit yield spreads for the low-rated bonds close to the historical spreads once the recent trends in the stock volatility are taken into account. We study the idiosyncratic and market volatility of stock returns in the cross-section of credit ratings. We find that the increase in the level of the firm-specific volatilit...

The Effect of Firm-Level Contracts on the Structure of Wages: Evidence from Matched Employer-Employee Data In Spain, as in several other European countries, sectoral bargaining agreements are automatically extended to cover all firms in an industry. Employers and employees can also negotiate firm-specific contracts. We use a large matched employer-employee data set to study the effects of firm-...

We empirically examine the influence of risk on firms’ capital structure adjustments. The process of adjustment is asymmetric and depends on the type of risk, its magnitude, the firm’s actual leverage with respect to its target, and its financial status. We show that firms with financial surpluses and above-target leverage adjust their leverage more rapidly when firm-specific risk is low and wh...

The performance of Islamic banks still fluctuates every year and even their ratios are below the BI standard per bank. purpose this research is to evaluate impact firm-specific risk (credit risk, liquidity operational risk) macroeconomic factors (inflation, GDPG unemployment) on commercial conventional (ROA) in Indonesia. Comparison with made because differences respective banking operations/sy...

Purpose Uncertainties caused by political risks can drastically affect global supply chains. However, the chain management literature has thus far developed rather limited knowledge on firms' perception of and reactions to increased risks. This study two main purposes: explore relationship between extant risk exposure perceived firm-specific understand impact vertical integration diversificatio...

Purpose : When conducting their business, insurers face various risks that are controlled for in order to mitigate them and protect the insured, inter alia . Moreover, being aware of factors determine reward-to-risk ratio is also crucial importance. Thus, aim this research identify potential influence risk-adjusted returns life insurance companies. Methodology The analysis conducted on a sample...

The paper investigates the relationship between human capital characteristics and firm performance in engineering consulting. Because general experience, firm-specific human capital and diversity carry specific costs and benefits we hypothesize curvilinear (taking inverted U-shapes) relations to firm performance. We find little effect of general experience and firm-specific human capital, but t...

This paper reexamines the determinants of firm performance and, in particular, the role that firm size plays in profitability. A fixed-effects dynamic panel data model for over 7,000 US publicly-held firms during the period 1987–2006 provides evidence that profit rates are positively correlated with firm size in a non-linear manner, holding an array of firmand industry-specific characteristics ...