Work

Firm Value, Risk, and Growth Opportunities

Year: 2000

Type: report

Abstract: We show that Tobin's q, as proxied by the ratio of the firm's market value to its book value, increases with the firm's systematic equity risk and falls with the firm's unsystematic equity risk. Further, an increase in the firm's total equity risk is associated with a fall in q. The negative relation between the change in total risk and the change in q is robust through time for the whole sample, but it does not hold for the largest firms.

Source: National Bureau of Economic Research

DOI: 10.3386/w7808

Authors: Hyun-Han Shin, Rene M. Stulz

Institutions: Yonsei University, National Bureau of Economic Research, European Corporate Governance Institute, The Ohio State University

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W1591601341

Cites: 34

Cited by: 179

Related to: 10