Facebook’s Business Risks Explored as Tax Trial Winds Down

Facebook’s tax trial continued Friday, with testimony heard from financial researchers diving into the methods of measuring the tech giant’s business risk and financial returns, in a tax dispute that could leave the company on the hook for $9 billion.

Friday’s proceedings heard testimony from Dr. Morten Sorensen, an associate professor at Dartmouth University’s Tuck School of Business, and Dr. Arthur Korteweg, a financial economist at the University of Southern California’s Marshall School of Business. The researchers are co-authors of a 2010 study establishing the beta, a number measurement of the level of financial risk and return for ...