An Examination of the Structural Stability of Bowman's Risk Return Paradox
The paper examines the dynamic behavior of Bowman's (1980, 1982) risk/return paradox. Using accounting risk measures it is demonstrated that the paradox is not stable across time or industries. Further, the paradox may disappear with market based risk measures. It is suggested that strategy researchers need to develop good ex-ante measures of risk.
Corporate Finance | Strategic Management Policy
Strategy and Organisation
Academy of Management Proceedings
Academy of Management
Fiegenbaum, Avi and THOMAS, Howard.
An Examination of the Structural Stability of Bowman's Risk Return Paradox. (1985). Academy of Management Proceedings. 1985, 7-10. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/3840