The Value Relevance of Financial Risk
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In this chapter we investigate the value relevance of financial risk-related information disclosure, that is, the usefulness of financial risk information for investors. In the chapter, we present the main empirical studies addressed to test the usefulness of financial risk information for investors’ investment decisions. On the basis of the literature, we posit our second research hypothesis, which we test on the sample identified in Chap. 3, after having modelled this research hypothesis with an Ohlson model-based value relevance regression equation.
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