Abstract
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 language | English |
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Place of Publication | York |
Publisher | Department of Management Studies, University of York |
Number of pages | 26 |
Publication status | Published - Dec 2005 |
Keywords
- systematic risk
- operating leverage
- rinancial leverage
- beta
- risk premium
- United Kingdom