Value investing: The academic research [Pt. 2]

Continued from Pt.1….Value investing: The academic research [Pt. 1] [klarman] Value Investing – Study two: Risky Value The second study discussed in UBS’s research on value is “Risky Value” by Atif Ellahie, Michael Katz & Scott Richardson. As already highlighted in the previous paper, there is a lack of a broad consensus as to whether the value premium constitutes compensation for bearing some type of systematic risk, or the outcome of behaviorally-driven mispricing. Atif Ellahie, Michael Katz, and Scott Richardson attempt to provide further support to a risk-based story by exploring value investing across 30 countries. The authors start their…