Hostname: page-component-586b7cd67f-2brh9 Total loading time: 0 Render date: 2024-12-04T20:24:17.128Z Has data issue: false hasContentIssue false
  • English
  • Français

Financial Factors Which Influence Beta Variations within an Homogeneous Industry Environment

Published online by Cambridge University Press:  19 October 2009

Ronald W. Melicher
Get access Rights & Permissions [Opens in a new window]

Extract

Research in the area of portfolio management and capital markets has led to the development of a fundamental concept of market risk. Through work with the capital asset pricing model, “risk” has been decomposed into systematic or market risk and specific or diversifiable risk. Recent interest has focused on integrating these portfolio theory and capital market concepts with corporate finance. Hamada [5], and others, provide theoretically-based analyses which suggest that differences in degree of market risk should be related to differences in financial management activities and practices.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 9 , Issue 2 , March 1974 , pp. 231 - 241
Copyright
Copyright © School of Business Administration, University of Washington 1974

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

[1]Beaver, William H.; Kettler, Paul; and Scholes, Myron. “The Association Between Market and Accounting Determined Risk Measures.” Accounting Review, October 1970, pp. 654–682.Google Scholar
[2]Brandon, Paul S. “The Electric Side of Combination Gas-Electric Utilities.” The Dell Journal of Economics and Management Science, Autumn 1971, pp. 688–703.Google Scholar
[3]Breen, William J., and Lerner, Eugene M.. “Corporate Financial Strategies and Market Measures of Risk and Return.” Journal of Finance, May 1973, pp. 339–352.CrossRefGoogle Scholar
[4]Brigham, Eugene F., and Gordon, Myron. “Leverage, Dividend Policy and the Cost of Capital.” Journal of Finance, September 1968, pp. 35–103.Google Scholar
[5]Hamada, Robert S. “Portfolio Analysis, Market Equilibrium and Corporation Finance.” Journal of Finance, March 1969, pp. 13–31.CrossRefGoogle Scholar
[6]Hamada, Robert S. “The Effect of the Firm's Capital Structure on the Systematic Risk of Common Stocks.” Journal of Finance, May 1972, pp. 435–452.CrossRefGoogle Scholar
[7]Logue, Dennis E., and Merville, Larry J.. “Financial Policy and Market Expectations.” Financial Management, Summer 1972, pp. 37–44.CrossRefGoogle Scholar
[8]Miller, M. H., and Modigliani, Franco. “Some Estimates of the Cost of Capital to the Electric Utility Industry.” American Economic Review, June 1966, pp. 333–391.Google Scholar
[9]Pinches, George E., and Mingo, Kent A.. “A Multivariate Analysis of Industrial Bond Ratings.” Journal of Finance, March 1973, pp. 1–18.CrossRefGoogle Scholar
[10]Pinches, George E.; Mingo, Kent A.; and Caruthers, J. Kent. “The Stability of Financial Patterns in Industrial Organizations.” Journal of Finance, May 1973, pp. 389–396.CrossRefGoogle Scholar
[11]Robichek, Alexander A.; Higgins, Robert C.; and Kinsman, Michael. “The Effect of Leverage on the Cost of Equity Capital of Electric Utility Firms.” Journal of Finance, May 1973, pp. 353–367.CrossRefGoogle Scholar
[12]Rummel, Ralph J.Applied Factor Analysis. Evanston, Ill.: Northwestern University Press, 1970.Google Scholar
[13]Sharpe, William F.Portfolio Theory and Capital Markets. New York: McGraw-Hill Book Company, 1970.Google Scholar
[14]Stevens, Donald L. “Financial Characteristics of Merged Firms: A Multivariate Analysis.” Journal of Financial and Quantitative Analysis, March 1973, pp. 149–158.CrossRefGoogle Scholar
[15]Weston, J. Fred. “A Test of Cost of Capital Propositions.” Southern Economic Journal, October 1963, pp. 105–112.CrossRefGoogle Scholar