: (1) financial crisis is unlikely to happen in the near future, and (2) the ultimate risk lies with China's economic …Motivated by growing concerns about the risks and instability of China's financial system, this article reviews several … commonly perceived financial risks and discusses their roots in China's politico-economic institutions. We emphasize the need …

Previous work shows that the growth rate of industrial production is a common macroeconomic risk factor in the cross …

This paper examines the empirical question of whether systematic equity risk of U.S. firms as measured by beta from the … Capital Asset Pricing Model reflects the risk of their pension plans. There are a number of reasons to suspect that it might … further clouds the real relation between pension plan risk and firm equity risk. The empirical findings in this paper are …

This paper measures the effects of the risk of war on nine U.S. financial variables using a heteroskedasticity …-based estimation technique. The results indicate that increases in the risk of war cause declines in Treasury yields and equity prices …, a widening of lower-grade corporate spreads, a fall in the dollar, and a rise in oil prices. This war risk factor …

From 1963 through 2015, idiosyncratic risk (IR) is high when market risk (MR) is high. We show that the positive … relation has roots in fundamentals as higher market risk predicts greater idiosyncratic earnings volatility and as firm …

Higher-beta and higher-volatility equities do not earn commensurately higher returns, a pattern known as the risk … anomaly. In this paper, we consider the possibility that the risk anomaly represents mispricing and develop its implications … for corporate leverage. The risk anomaly generates a simple tradeoff theory: At zero leverage, the overall cost of capital …

power for expected returns across a range of equity characteristic portfolios and non-equity asset classes, with risk price … estimates that are of the same sign and similar in magnitude. Positive exposure to capital share risk earns a positive risk …

persistent dividends and a time-varying risk correction. The model is not rejected by the data. Variations in expected future … dividends are found to explain between one-sixth and one-third of variations in prices. Moreover, the risk correction is …