The association between accounting and market-based risk measures

S. Toms, D.T. Nguyen, A. Salama

Research output: Working paper


The paper derives operating and financial measures of leverage and tests their association with market based measures of equity risk. It is the first such study to use purely accounting-based data to derive the leverage measures. In line with previous literature it conducts a new test on the relative importance of operating and financial leverage. The results suggest that operating costs have a greater impact.
Original languageEnglish
Place of PublicationYork
PublisherDepartment of Management Studies, University of York
Number of pages26
Publication statusPublished - Dec 2005


  • systematic risk
  • operating leverage
  • rinancial leverage
  • beta
  • risk premium
  • United Kingdom

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