-levering procedure is around for the case of risk-free debt. The procedure for risky debt is much less clear even under very simplifying …

inversely associated with corporate failures, suggesting higher stakes of directors lower the risk of financial distress. When …

of the capital asset pricing model (CAPM) model and analysed portfolios based on three liquidity ratios and four solvency … risk of bankruptcy are able to meet their short-term liabilities. Liquidity and solvency measured by financial ratios … significantly affect the sensitivity of the rate of return on shares to the risk factors expressed in the CAPM, Fama––French and …

business managers have appropriate cash flow management policies to reduce the risk of financial distress. …

This paper studies the historical time-varying dynamics of risk for individual stocks in the U.S. market. Total risk of … an individual stock is decomposed into two components, systematic risk and idiosyncratic risk, and both components are … studied separately. We start from the historical trend in the magnitude of risk and then turn to the relation between …

In Merton (1987), idiosyncratic risk is priced in equilibrium as a consequence of incomplete diversification. We modify … results in a state-dependent idiosyncratic risk premium that is higher when average idiosyncratic volatility is low, and vice … versa. The data appear to be consistent a positive state-dependent premium for idiosyncratic risk both in the US and other …

The effect of stock liquidity on stock returns is well documented in the developed capital markets, while similar …-dependent variance of liquidity premium in the Polish stock market. The Polish capital market may serve as a benchmark for other emerging … Polish stock market exists stock liquidity premium, which is statistically significant, but constitutes only a small fraction …

. In particular, we can numerically support the usual simplification in the absence of default risk. In case that firms are … company cost of capital does practically not depend on the debt ratio if the firm is not subject to default risk or if …

competitive advantage and on keeping a sustained superior performance. However, the impact of corporate reputation on risk, in …, analyze the effect of corporate reputation on stock return and risk. A model based on firms' financial market data was … concerning firms' abnormal returns and firms' systematic risk. This can be justified because stock prices adjusted instantly to …