Implied penalties for financial leverage: theory versus empirical evidence.: An article from: Quarterly Journal of Business and Economics

This digital document is an article from Quarterly Journal of Business and Economics, published by University of Nebraska-Lincoln on March 22, 1996. The length of the article is 7644 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: Measures of the beta parameter in the single index market model are re-examined to determine if there is any link between these measures and the degree of financial leverage of listed firms. Results show that any notable relationship between beta and financial leverage is masked by nonleverage differences across firms that have been grouped by two-letter SIC codes. An important implication of this is that great care should taken when defining operating risk. Thus, caution should be exercised when leverage adjustment techniques are applied in research-related applications of market models.

Citation Details
Title: Implied penalties for financial leverage: theory versus empirical evidence.
Author: Felicia Marston
Publication:Quarterly Journal of Business and Economics (Refereed)
Date: March 22, 1996
Publisher: University of Nebraska-Lincoln
Volume: v35 Issue: n2 Page: p77(21)

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