Firm-specific risk

Firm-specific risk

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(1989) find no tendency of reduced firm-specific risk as a result of merger activities.
Experts and Courts Routinely Incorporate Firm-Specific Risk
In other words, above and beyond those related to firm-specific risk, there is an incremental effect of CEO's risk-increasing/risk-decreasing incentives on auditor litigation risk.
Where the trustee has delegated investment duties to a professional investment manager the trustee need only ask, "Will you please send me a memo on your firm's letterhead that confirms that, in your professional opinion, the portfolio is reasonably diversified within the standards of Modern Portfolio Theory, with an objective of reducing or removing firm-specific risk from the portfolio?"
Despite portfolio theory's prediction that firm-specific risk
Consequently, insiders have incentives to reduce their exposure to firm-specific risk and, over time, monetize their equity positions in their firms' stock.
Typically, studies on the ERC demonstrate that stock prices are a function of all information variables that predict dividends, namely, transitory components, firm's discount rates, economic growth expectations, and risk (systematic risk and firm-specific risk).
In this session, Altman combines an analysis of credit risk from both a macroeconomic financial markets viewpoint and a microeconomic firm-specific risk of default analysis.
Our investigation provides evidence that an increase in firm-specific risk leads to a reduction in both public and nonpublic firms' leverage.
Firm-specific risk evaluation provides a more fine-grained look at how VCs manage risk and whether there are significant differences in the way risk is managed between ventures that are VC-backed and those that are not.
(16) They can eliminate firm-specific risk through diversification.
Just through conversations with funds, I find that when a fund has between $500 million and $700 million in LDI assets, they start to diversify the firm-specific risk -- but that funds of all size tend to hire more managers as LDI assets increase."