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An empirical investigation of the inter-relationships between systematic risk, financial leverage and operating leverage of industrial companies listed on the Johannesburg Stock Exchange
Bibliography: pages 234-247.
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| Main Author: | |
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| Other Authors: | |
| Format: | Thesis |
| Language: | English |
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College of Accounting
2016
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| _version_ | 1867613289184231424 |
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| access_status_str | Open Access |
| author | Troughton, Mark Timothy |
| author2 | Flynn, David |
| author_browse | Flynn, David Troughton, Mark Timothy |
| author_facet | Flynn, David Troughton, Mark Timothy |
| author_sort | Troughton, Mark Timothy |
| collection | Thesis |
| description | Bibliography: pages 234-247. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/16112 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:33:45.686Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2016 |
| publishDateRange | 2016 |
| publishDateSort | 2016 |
| publisher | College of Accounting |
| publisherStr | College of Accounting |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/16112 An empirical investigation of the inter-relationships between systematic risk, financial leverage and operating leverage of industrial companies listed on the Johannesburg Stock Exchange Troughton, Mark Timothy Flynn, David Financial Management Bibliography: pages 234-247. The Capital Asset Pricing Model (CAPM) postulates that beta is a quantitative measure of a company's undiversifiable risk, the determinants of which are of considerable interest to financial managers and investors alike. Analytical research has shown that beta is a positive function of a company's unlevered or asset beta and its market value debt to equity ratio (i.e. financial leverage). In turn, unlevered beta has been shown to be a positive function of a company's operating leverage, and the trade-off between operating and financial leverage proposed as a means of stabilising beta. The objective of this research was to empirically determine the nature of the relationships · between: beta and financial leverage; beta and operating leverage; and financial and operating leverage. A significant level of positive association was hypothesised between beta and both financial and operating leverage, while a significant negative association was hypothesised between financial leverage and operating leverage. 2016-01-02T04:41:19Z 2016-01-02T04:41:19Z 1996 Master Thesis Masters MCom http://hdl.handle.net/11427/16112 eng application/pdf College of Accounting Faculty of Commerce University of Cape Town |
| spellingShingle | Financial Management Troughton, Mark Timothy An empirical investigation of the inter-relationships between systematic risk, financial leverage and operating leverage of industrial companies listed on the Johannesburg Stock Exchange |
| thesis_degree_str | Master's |
| title | An empirical investigation of the inter-relationships between systematic risk, financial leverage and operating leverage of industrial companies listed on the Johannesburg Stock Exchange |
| title_full | An empirical investigation of the inter-relationships between systematic risk, financial leverage and operating leverage of industrial companies listed on the Johannesburg Stock Exchange |
| title_fullStr | An empirical investigation of the inter-relationships between systematic risk, financial leverage and operating leverage of industrial companies listed on the Johannesburg Stock Exchange |
| title_full_unstemmed | An empirical investigation of the inter-relationships between systematic risk, financial leverage and operating leverage of industrial companies listed on the Johannesburg Stock Exchange |
| title_short | An empirical investigation of the inter-relationships between systematic risk, financial leverage and operating leverage of industrial companies listed on the Johannesburg Stock Exchange |
| title_sort | empirical investigation of the inter relationships between systematic risk financial leverage and operating leverage of industrial companies listed on the johannesburg stock exchange |
| topic | Financial Management |
| url | http://hdl.handle.net/11427/16112 |
| work_keys_str_mv | AT troughtonmarktimothy anempiricalinvestigationoftheinterrelationshipsbetweensystematicriskfinancialleverageandoperatingleverageofindustrialcompanieslistedonthejohannesburgstockexchange AT troughtonmarktimothy empiricalinvestigationoftheinterrelationshipsbetweensystematicriskfinancialleverageandoperatingleverageofindustrialcompanieslistedonthejohannesburgstockexchange |