This study investigates whether audit market competition influences the risk profile of audit offices' client … portfolios and whether an audit office's client risk profile affects the association between audit market competition and audit … quality. Economic theory suggests that market competition can affect a company's risk-taking, but there is limited evidence on …

asset prices reflect both covariance risk and misperceptions of firmsapos prospects, and in which arbitrageurs trade against … mispricing. In equilibrium, expected returns are linearly related to both risk and mispricing measures (e.g., fundamental …

This study documents the prominent role of idiosyncratic risk in impeding arbitrage activities with regard to a new … future returns the “Vo/P anomaly.” We find that this Vo/P anomaly is exacerbated by idiosyncratic risk to a greater extent … than by any other arbitrage risk factor, including institutional ownership, analyst coverage, bid-ask spread, and trading …

evidence suggests that low-duration stocks are also high-value, high-profitability, low-investment and low-risk stocks. In …

supplement their current SFP risk exposure. Additionally, we observe issuance patterns in line with the argument that issuers …

risk. They are of increasing importance in financial accounting, including the valuation of goodwill and other intangibles … the firm, this paper proposes an alternative accounting based approach: accounting based risk measurement (ABRM …). Alternatives to beta are computed from planning and budgeting metrics at firm level to produce consistent risk estimates factoring …

conservative accounting, the book rate of return informs about risk and the expected return to the investor. In contrast to asset … pricing research where the book rate of return is viewed as positively associated with risk and expected stock returns, the … associated with risk and expected return. The empirical analysis indicates that the market prices equities accordingly. It also …

We investigate the potential link between momentum in currency returns and global economic risk as measured by currency … return dispersion (RD). Initial tests contribute to the exchange rate puzzle by showing that the same macroeconomic risk … between these momentum payoffs and global economic risk appears to increase linearly in risk. Based on this evidence, we …

A productivity shock identified through a VAR is a priced risk factor for one-month industry momentum portfolios and … commands a positive risk premium. Stocks in winning industries have higher sensitivity to productivity news, thereby earning … pricing model with human wealth. In many specifications, the exposure to productivity risk captures more than half of the …