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Balance sheet capacity and endogenous risk

Danielsson, Jon; Song Shin, Hyun; Zigrand, Jean-Pierre - London School of Economics (LSE) - 2011

Banks operating under Value-at-Risk constraints give rise to a welldefined aggregate balance sheet capacity for the banking sector as a whole that depends on total bank capital. Equilibrium risk and market risk premiums can be solved in closed form as functions of aggregate bank capital. We...

Persistent link: https://www.econbiz.de/10010884614

Anti-herding and strategic consultation

Levy, Gilat - London School of Economics (LSE) - 2004

decision makers who are motivated by reputation concerns tend to ‘anti-herding’, i.e., they excessively contradict public …

Persistent link: https://www.econbiz.de/10010928812

Reputation and allocation of ownership

Halonen, Maija - London School of Economics (LSE) - 1995

We show that allocation of ownership matters even in a long-term relationship where problems of opportunism are less severe unless agents are very patient. Ownership structure is chosen to give the agents best incentives to cooperate. The optimal control structure of the static game restricts...

Persistent link: https://www.econbiz.de/10010928815

The broadening spectrum of reputation risk in organizations: banking on risk and trust relationships

Scott, Susan V.; Walsham, Geoff - London School of Economics (LSE) - 2004

Globalizing knowledge economies foster conditions that intensify the role and value of organizational reputation risk …. In a holistic, enterprise focused era reputation is a key strategic construct that can act as a boundary object linking … reputation risk. Having noted the ambivalence that surrounds ‘risk positions’, we present a re-definition of reputation risk that …

Persistent link: https://www.econbiz.de/10010744830

IMF concern for reputation and conditional lending failure: theory and empirics

Marchesi, Silvia; Sabani, Laura - London School of Economics (LSE) - 2005

order to preserve its reputation of being a good monitor, may actually distort its lending decisions towards greater laxity … between a country and the IMF. The longer this relationship, the stronger the IMF reputation will be affected in case it …

Persistent link: https://www.econbiz.de/10010745315

Do reputational concerns lead to reliable ratings?

Mariano, Beatriz - London School of Economics (LSE) - 2008

This paper examines to what extent reputational concerns give rating agencies incentives to reveal information. It demonstrates that, in a simple model in which a rating agency has public and private information about a project, it may ignore private information and even contradict public...

Persistent link: https://www.econbiz.de/10010745887

Self-confidence and survival

Bar-Isaac, Heski - London School of Economics (LSE) - 2001

We consider the impact of history on the survival of a monopolist selling single units in discrete time periods, whose quality is learned slowly. If the seller learns her own quality at the same rate as customers, a sufficiently bad run of luck could induce her to stop selling. When she knows...

Persistent link: https://www.econbiz.de/10010746467

Banking on trust: managing reputation risk in financial service organizations

Scott, Susan V.; Walsham, Geoff - London School of Economics (LSE) - 2002

In this paper we introduce concepts that build a theoretical notion of reputation risk and establish the need to extend … our approach to managing such risk.. The existing literature on reputation risk has tended to be reactive and focus on … corrosive may present an occasion for creative management. We suggest that proactive reputation risk policies and practices are …

Persistent link: https://www.econbiz.de/10010746546

Strategic consultation in the presence of career concerns

Levy, Gilat - London School of Economics (LSE) - 2000

find that when agents are concerned about their reputation, consultation results in sub-optimal sharing of information …

Persistent link: https://www.econbiz.de/10010746684

Does the underground economy hold back financial deepening? Evidence from the Italian credit market

Gobbi, Giorgio; Zizza, Roberta - London School of Economics (LSE) - 2007

The paper investigates the relationship between underground activities and financial deepening. The access to external finance requires entrepreneurs to disclose credible information through formal documentation. This requirement may be impossible to oblige to for many informal producers who...

Persistent link: https://www.econbiz.de/10010744823