What question did this study set out to answer?

The aim is to determine if leasing practices affected the systematic risk of companies following regulatory changes.

Lease Capitalization and Systematic Risk.

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Study investigates leasing impact on systematic risk in companies, suggesting minimal market effect.

The aim is to determine if leasing practices affected the systematic risk of companies following regulatory changes.
Analyzed three groups of companies based on leasing intensity: high-leasing, low-leasing, and random sample.
Matched leasing and non-leasing companies by Standard Industrial Classification (SIC) code.
Compared systematic risk before and after significant regulatory dates in 1973 and 1975.
No significant change in systematic risk pre- and post-June 1973 in any group.
No significant change in systematic risk pre- and post-August 1975 in any group.
Concludes that ASR 147 and SFAS 13 had little impact on market perceptions of systematic risk.

Finnerty et al. (1980) studied this question.

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