Report
The high required return on equity drives investors into highly leveraged companies
It is well known that the required return on equity (RoE) in OECD countries is increasingly abnormally high and that this has numerous effects on companies’ behaviour. In this Flash we show that it drives investors into highly leveraged companies, as these companies offer a higher expected RoE. But they also have higher variability in their RoE and a higher risk of bankruptcy.
Provider
Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
Other Reports from Natixis
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.