This paper studies optimal bank capital requirements in an economy where bank losses have financial spillovers. The spillovers amplify the effects of shocks, making the banking system and the economy less stable. The spillovers increase with banks' financial distortions, which in turn increase...

We examine whether bankers face disciplining consequences for structuring poorly performing corporate loans. We construct a novel dataset containing the employment histories and loan portfolios of a large sample of corporate bankers and find that corporate credit events (i.e., downgrades,...

Previous research (Bell, Landsman and Shackelford, Journal of Accounting Research, 2001) provides survey evidence that, for the clients of a large audit firm, audit clients with higher perceived business risk bear the expected costs of this risk with higher audit fees. We examine this relation...

Previous research provides evidence that, for the clients of a large audit firm, audit clients with higher perceived business risk bear the expected costs of this risk with higher audit fees. We extend the literature, which focuses on the relation between litigation risk and audit fees, by...

Insurance ideas inform legal thought: from tort law, to health law, to theories of distributive justice. Within legal thought, insurance is often conceived as an ideal type in which insurers distribute determinable risks through contracts that fix the parties' obligations in advance. This ideal...

The notion of “service” is a very important one, with an increasing role in an expanding economy which becomes the condition of sustainable and long-term development. The technical services that must be assured differ according to the type of product. In Romania, the market economy towards...