Risk-seeking by troubled firms: JSE listed firms
| dc.contributor.author | Raphunga, Pembelani | |
| dc.date.accessioned | 2021-08-04T13:52:08Z | |
| dc.date.available | 2021-08-04T13:52:08Z | |
| dc.date.issued | 2020 | |
| dc.description | A research report submitted to the Faculty of Commerce, Law and Management in order to fulfil the requirements for a Masters in Commerce with a 50% Research component, 2020 | en_ZA |
| dc.description.abstract | This study examines the risk-seeking behaviour of troubled firms using a sample of Johannesburg Stock Exchange (JSE) listed firms over the period 1995-2018. A firm’s riskiness is determined by the absolute distance of its return on equity (ROE) from its industry median ROE. Thus, a firm’s performance is defined relative to its peers. This study reports a statistically significant negative relationship between the firm’s performance and its subsequent risk. When compared to prior gains, prior losses are followed by more risk-seeking activities. The findings are consistent with prospect theory. Firms take more risk when troubled, indicating that current performance of a firm determines its future risk level. Moreover, these associations are much stronger for firms which remain in the same states for longer periods | en_ZA |
| dc.description.librarian | CK2021 | en_ZA |
| dc.faculty | Faculty of Commerce, Law and Management | en_ZA |
| dc.identifier.uri | https://hdl.handle.net/10539/31447 | |
| dc.language.iso | en | en_ZA |
| dc.title | Risk-seeking by troubled firms: JSE listed firms | en_ZA |
| dc.type | Thesis | en_ZA |
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