This paper investigates the industry risk using estimation of the volatility of financial ratios.
As a result of this study, the food and beverage industry, the steel industry, the tire industry, and the gas industry are turned out to be the low risk...
This paper investigates the industry risk using estimation of the volatility of financial ratios.
As a result of this study, the food and beverage industry, the steel industry, the tire industry, and the gas industry are turned out to be the low risk of low volatility but high risk of performance of financial ratios.
In contrast, industries like that semiconductors, air transport, SI, and general construction are turned out to be a high risk of volatility but a low risk of performance of financial ratios. The contribution of this study is that industry-specific volatility and financial ratio are measured using financial statements summed up by industry unit.