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2013 | 1 | nr 4 Modern Challenges for Business and Economy in CEE Countries | 37--56
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An Empirical Study of Unsystematic Risk Factors in the Capital Asset Pricing Model : the Case of Russian Forestry Sector

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Objective: The objective of this paper is to consider the Capital Asset Pricing Model, to determine its most disputable points, to identify concepts defining and supplementing the points of the model. The article ends with an example of calculation of the cost of equity for a company of a forestry sector of Russia.

Research Design & Methods: Two levels of study were used: theoretical and empirical. The theoretical level of research was based on interrogation, measurement, observation, experiment. The experimental part of the study has been performed by calculating models for three options of implementing the investment projects and the assessment of the total impact of reducing non-systematic risks for the Russian forestry sector.

Findings: The practical application of the research is the development of tools to assess the non-systematic risks arising during the project implementation in the forest-based sector of Russia, which enables to assess those risks for logging and sawmill woodworking enterprises.

Implications & Recommendations: The research provides the ability to assess nonsystematic risks and determines the viability of risk mitigation for both initiators of investment projects and existing investors.

Contribution & Value Added: The originality of the research is based on the assessment of the effects of non-systematic risks on investment projects in the forestry sector in Russia. (original abstract)
  • Higher School of Economics National Research University
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