Empirical accounting research provides surprisingly little evidence on whether accounting earnings numbers capture cross-sectional differences in risk that are associated with cross-sectional differences in share prices. We address two questions regarding the risk-relevance of accounting numbers: (1) Are accounting-related risk measures related with market evaluations and risk pricing? (2) If so, Are these risk measures associated with traditional risk measures? Our empirical results from investigating 88 TSE companies indicate accounting-based risk measures can justify priced risk in capital market and are associated with traditional risk measures. There is also a significant relationship between accounting-based risk measures and stock returns.
Noruzbeigi, E., Saghaf, A., & Morad Zadeh Fard, M. (2012). Fundamental-Based Risk Measurement and its Relation with Risk Adjustment and Stock Return. Accounting and Auditing Research, 4(16), 38-61. doi: 10.22034/iaar.2012.104581
MLA
Ebrahim Noruzbeigi; Ali Saghaf; Mahdi Morad Zadeh Fard. "Fundamental-Based Risk Measurement and its Relation with Risk Adjustment and Stock Return". Accounting and Auditing Research, 4, 16, 2012, 38-61. doi: 10.22034/iaar.2012.104581
HARVARD
Noruzbeigi, E., Saghaf, A., Morad Zadeh Fard, M. (2012). 'Fundamental-Based Risk Measurement and its Relation with Risk Adjustment and Stock Return', Accounting and Auditing Research, 4(16), pp. 38-61. doi: 10.22034/iaar.2012.104581
VANCOUVER
Noruzbeigi, E., Saghaf, A., Morad Zadeh Fard, M. Fundamental-Based Risk Measurement and its Relation with Risk Adjustment and Stock Return. Accounting and Auditing Research, 2012; 4(16): 38-61. doi: 10.22034/iaar.2012.104581
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