resilience. The situation is worsened by frequent occurrence of man made disasters such as fires. In this context, evolving risk … transfer mechanisms, also prioritized by the Hyogo Framework for Action, becomes crucial. Ex ante risk financing mechanisms …, India has taken up the issue of development of effective risk transfer mechanisms and has accordingly held number workshops …

This paper studies the agency costs of debt and the role of risk shifting as firms face financial distress. The Small … Note. Economic mechanisms that might prevent risk shifting, such as covenants and reputation concerns, are primarily not … that risk shifting transfers wealth from bondholders to equityholders …

I use a matched buyer-supplier sample of U.S. industrial firms to investigate the impact of customer risk on suppliers …' choice between cash and lines of credit as a source of liquidity. I find that customer risk decreases the reliance on bank … factors affecting the choice between cash and lines of credit. A one standard deviation increase in customer risk is …

This paper describes an equilibrium macro finance model where contracts are the mechanism by which differentially risk …-investment decisions generating operating income and operating risk) and (financial decisions generating financial risk); and 2 no … constrained managers of the representative firm make production-investment decisions that conform to the risk aversion of …

This paper investigates the effects of risk sharing supplier relationships on the profitability and cost of capital of … a new investment project. We compare the three possibilities of not investing in the project, bearing the project risk … alone and sharing the risk with a supplier. We find that firms enter risk sharing contracts with a supplier if there is a …

This paper describes a parsimonious macro-finance model where contracts are the mechanism by which differentially risk … in risk aversion or perception of risk changes the market valuations of their securities and has the representative firm … adjustment is designed to offset any risk shifting effects on the market valuation of bonds. The model set-up includes 2 …

Risk is a vital concept to grasp when investing in a firm or project. It is also a key ingredient required to evaluate … debt financing employed, must be accounted for to correctly assess a project’s risk.There are different measures of risk … used by practitioners. The most widely used risk measure corporate finance is CAPM beta. It can be calculated as the co …

corporate bonds but also credit risk. The latter effect originates from firms' debt rollover. When liquidity deterioration … rollover risk …

Financial liquidity in enterprise is maintained and managed for risk reduction purposes. Liquidity management should … maximization strategy is executed with a focus on risk and uncertainty. The paper presents the consequences that can result from … operating risk that is related to liquidity policy in the context of electric utility industry firms. An increase in the level …

This paper models a firm's rollover risk generated by conflict of interest between debt and equity holders. When the …