Essays about: "Distress Puzzle"
Found 2 essays containing the words Distress Puzzle.
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1. Reverse Robin Hood. A Swedish Assessment of the Distress Puzzle
University essay from Göteborgs universitet/Graduate SchoolAbstract : This research adopts some of the most well-known models to predict financial distress to be able to investigate whether firms with higher probability to default and thereby incorporating more risk do provide investors with a higher return in the Swedish market. We create portfolios sorted on the predicted probability of the financial distress and subsequently perform a portfolio analysis to investigate the risk return relationship. READ MORE
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2. The Distress Risk Puzzle in Turbulent Times - Default risk during the financial crises
University essay from Handelshögskolan i Stockholm/Institutionen för finansiell ekonomiAbstract : Studies on whether risk of default is systematic or not have led to the discovery of the distress risk puzzle. It is a rather new anomaly and its implications are that empirical evidence seems to indicate that higher default risk results in lower returns. READ MORE