Systematic Risk and Idiosyncratic Risk Literature Review

Linye Huang

doi:10.54097/ehss.v1i.755

Authors

Linye Huang

DOI:

https://doi.org/10.54097/ehss.v1i.755

Keywords:

Systematic Risk, Idiosyncratic Risk, Determinants.

Abstract

This paper summarizes the previous conclusions on the factors related to systematic risk and idiosyncratic risk. This paper summarizes the impact of some specific macroeconomic factors, product market competition, and investor sentiment on this risk. Then it summarizes the impact of corporate governance and corporate social responsibility on idiosyncratic risk. I found that these factors have different degrees of influence in different environments, countries, and markets, and made a comparative analysis of individual factors. Help investors or company managers better understand the factors related to these two risks.

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