The quot;Big Bangquot; deregulation of Japanese financial markets focuses on financial modernization. I argue that financial modernization is of secondary importance for improving the performance of the Japanese economy. A key long-term issue facing Japan is to maintain its high level of per...

Event risk is the risk that a portfolio's value can be affected by large jumps in market prices. Event risk is synonymous with quot;fat tailsquot; or quot;jump riskquot;. Event risk is one component of quot;specific riskquot;, defined by bank supervisors as the component of market risk not...

I test whether corporate governance is ineffective in emerging markets by estimating the link between CEO turnover and firm performance for over 1,200 firms in eight emerging markets. While previous papers on corporate governance in emerging markets have studied corporate governance mechanisms,...

Jamshidian and Zhu (1997) propose a discrete grid method for simplifying the computation of Value at Risk (VaR) for fixed-income portfolios. Their method relies on two simplifications. First, the value of fixed income instruments is modeled as depending on a small number of risk factors chosen...