Open AccessCompany and asset specific risk factors: Short overview on high yield bonds
Author(s) -
Aki Lappalainen
Publication year - 2016
Publication title -
corporate ownership and control
Language(s) - English
Resource type - Journals
eISSN - 1810-0368
pISSN - 1727-9232
DOI - 10.22495/cocv14i1c3p4
Subject(s) - business , equity (law) , dividend , bond , volatility (finance) , dividend yield , specific risk , cash , financial economics , finance , economics , dividend policy , political science , law
This paper discusses the theory that risk factors divide to the company specific and asset specific risk factors. The first group affects to the expected value of an equity of a company whereas the second only to the positive cash outflows for a specific asset. I find that equity market, value, and quality factors are indeed possible company specific risk factors with influence on an expected equity of a company and dividend and volatility factors are possible stock specific risk factors affecting positively to dividends and other cash payments from a company to shareholders. These results are statistically significant and important for our understanding of risk factors and their characteristics.