Browsing by Subject "Idiosyncratic volatility"
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Corporate risk-taking in developed countries: The influence of economic policy uncertainty and macroeconomic conditions Authors:
Publisher and Date:(Elsevier, 2020)Using 74,974 firm-year observations covering 15 developed European countries over the time period 1999-2017, this paper explores the effect of economic policy uncertainty on corporate risk-taking. The findings indicate that firms become more risk averse with an economic policy uncertainty shock. The relationship is valid under idiosyncratic and earnings volatility risk measures, regardless of whether the macroeconomic condition is favorable or not. Moreover, the competition level in the industry ...