managers are risk averse, they might underinvest when firm-specific uncertainty increases, leading to suboptimal investment …High-powered incentives may induce higher managerial effort, but they also expose managers to idiosyncratic risk. If …, firm investment falls, and more so when managers own a larger fraction of the firm. This negative effect of managerial risk …

This paper proposes a method for constructing a volatility risk premium, or investor risk aversion, index. The method … volatilities results in significant temporal dependencies in the estimated stochastic volatility risk premium, which we in turn … relate to a set of underlying macro-finance state variables. We also find that the extracted volatility risk premium helps …

We investigate the empirical relationship between company investment and measures of uncertainty, controlling for the … effect of expected future profitability on current investment decisions. We consider three measures of uncertainty derived … for at least four consecutive years between 1982 and 1999. The results show that all three measures of uncertainty are …

We identify the relative importance of changes in the conditional variance of fundamentals (which we call "uncertainty …") and changes in risk aversion ("risk" for short) in the determination of the term structure, equity prices, and risk … premiums. Theoretically, we introduce persistent time-varying uncertainty about the fundamentals in an external habit model …

. Specifically, we find that firms whose managers have sufficiently high control rights that they may reasonably be expected to … enough to fully compensate them for expected expropriation or increased estimation risk associated with expected poor …

Managers' incentives may conflict with those of shareholders or creditors, particularly at leveraged, opaque banks … policies, risk, and methods of risk management. Formal corporate governance is lower when manager ownership shares are higher … governance controls are employed. Banks with higher managerial ownership target lower default risk. Higher managerial ownership …

denominated debt as an alternative strategy to hedge currency risk, selection bias, and a possible endogeneity between hedging …

We investigate the impact of family blockholders on the firm's debt agency costs under different investor protection … extraction and higher bankruptcy risk--can exacerbate debt agency costs. The actual impact can go either way and what matters … firms originating from 24 different countries, we find that family firms originating from low investor protection …