Risk, Return, and Regulation

Ralph Wanger

doi:10.2469/cfm.v28.n4.9

Corporate governance, digital platforms, and network theory: information and risk-return sharing of connected stakeholders

MANAGEMENT CONTROL ◽

10.3280/maco2020-002009 ◽

2020 ◽

pp. 179-204

Author(s):

Roberto Moro Visconti

Keyword(s):

Corporate Governance ◽

Network Theory ◽

Digital Platforms ◽

Risk Return

Download Full-text

There Is a Risk–Return Trade-Off After All

CFA Digest ◽

10.2469/dig.v35.n4.1781 ◽

2005 ◽

Vol 35 (4) ◽

pp. 71-72

Author(s):

Frank T. Magiera

Keyword(s):

Trade Off ◽

Risk Return

Download Full-text

Estimation of Risk-Return Relation Parameters in the Context of the Apt Model

Olsztyn Economic Journal ◽

10.2478/v10021-009-0002-6 ◽

2009 ◽

Vol 4 (1) ◽

pp. 26-38

Author(s):

Małgorzata Kobylińska ◽

Lesław Markowski

Keyword(s):

Risk Return ◽

Estimation Of Risk

Download Full-text

A Single Period Stochastic Model for Maximising Firms Value

GIS Business ◽

10.26643/gis.v11i6.3384 ◽

2016 ◽

Vol 11 (6) ◽

pp. 39-45

Author(s):

J. P. Singh

Keyword(s):

Capital Market ◽

Firm Value ◽

Capital Asset Pricing ◽

Capital Asset ◽

Asset Pricing Model ◽

Value Maximization ◽

Risk Return ◽

Bankruptcy Costs ◽

Single Period ◽

Debt Capacity

This article sets up a single period value maximization model for the firm based on stochastic end-of-period cash inflows, stochastic bankruptcy costs and taxes based on income rather than wealth. The risk-return trade-off is captured in the Capital Asset Pricing Model. Thus, the model also assumes a perfect capital market and market equilibrium. The model establishes the existence of a unique optimal financial leverage at which the firm value is maximized, this leverage being less than the maximum debt capacity of the firm.

Download Full-text