WebWe find a significant negative effect of idiosyncratic stock-return volatility on investment. We address the endogeneity problem of stock return volatility by instrumenting for volatility with a measure of a firm's customer base concentration. We propose that the negative effect of idiosyncratic risk on investment is partly due to managerial risk aversion, and find … http://www.nanfangjingji.cn/EN/abstract/abstract19661.shtml
RISK SHOCKS, RISK MANAGEMENT, AND INVESTMENT
WebAccording to BusinessDictionary.com, idiosyncratic is: “The possibility that the price of an asset may decline due to an event that could specifically affect that asset but not … Web11 jun. 2024 · 10.1016/j.red.2006.11.001 10.1016/j.red.2006.11.001 2024-06-11 00:00:00 This paper augments the neoclassical growth model to study the macroeconomic effects of uninsured idiosyncratic investment, or capital-income, risk. Under standard assumptions for preferences and technologies, individual policy rules are linear in individual wealth, … jobs at psu university park
Idiosyncratic Risk - Meaning, Examples, How to Reduce?
WebIf managers are risk averse, they might underinvest when firm-specific uncertainty increases, leading to suboptimal investment decisions from the perspective of well … WebIdiosyncratic and systemic risk Stress testing scenarios should address one of two types of risk factor, idiosyncratic and systemic. Systemic risk refers to scenarios which are market driven and may affect all organisations, for example Brexit. Idiosyncratic risks are those which are specific to a particular http://arno.uvt.nl/show.cgi?fid=112940 jobs at private schools