Accounting for Risk

Stephen Penman

Foundations and Trends(R) in Accounting, 2021, vol. 15, issue 4, 373-507

Abstract: This monograph reports on developing research that assesses the risk of equity investing from financial statements. The relevant information is conveyed by accounting numbers generated under accounting principles that respond to risk and its resolution, namely the realization principle and conservative accounting for investment. The recognition of this information leads to a financial statement analysis that extracts the risk information, to a reevaluation of performance metrics, and to revisions in risk factor models in asset pricing that utilize accounting information. The research also has implications for accounting-based valuation and for accounting standards that provide information for valuation and equity investing.

Keywords: Accounting (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://dx.doi.org/10.1561/1400000064 (application/xml)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:now:fntacc:1400000064

Access Statistics for this article

More articles in Foundations and Trends(R) in Accounting from now publishers
Bibliographic data for series maintained by Lucy Wiseman ().