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A Note On The Relationship Between Systematic Risk And Growth In Earnings

Author

Listed:
  • Shahid Hamid
  • Arun J. Prakash
  • Gary A. Anderson

Abstract

This paper provides a simple analytical derivation of the relationship between growth in earnings and systematic risk. Theoretically and empirically it concludes that this relationship is positive.

Suggested Citation

  • Shahid Hamid & Arun J. Prakash & Gary A. Anderson, 1994. "A Note On The Relationship Between Systematic Risk And Growth In Earnings," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 21(2), pages 293-297, March.
    • Handle: RePEc:bla:jbfnac:v:21:y:1994:i:2:p:293-297
    DOI: 10.1111/j.1468-5957.1994.tb00320.x
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    References listed on IDEAS

    as
    1. Rubinstein, Mark E, 1973. "A Mean-Variance Synthesis of Corporate Financial Theory," Journal of Finance, American Finance Association, vol. 28(1), pages 167-181, March.
    2. Bowman, Robert G, 1979. "The Theoretical Relationship between Systematic Risk and Financial (Accounting) Variables," Journal of Finance, American Finance Association, vol. 34(3), pages 617-630, June.
    3. Fewings, David R, 1975. "The Impact of Corporate Growth on the Risk of Common Stocks," Journal of Finance, American Finance Association, vol. 30(2), pages 525-531, May.
    4. Banz, Rolf W., 1981. "The relationship between return and market value of common stocks," Journal of Financial Economics, Elsevier, vol. 9(1), pages 3-18, March.
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