Using German panel data, we assess the causal effect of job loss, and thus of an extensive income shock, on risk … attitude. In line with predictions of expected utility reasoning about absolute risk aversion, losing oneś job reduces the … perceives the threat of job loss and is of a transitory nature. The change in stated risk attitude matches observable job …

Mutual fund risk-taking via active portfolio rebalancing varies both in the cross-section and over time. In this paper …, I show that the same is true for funds' off- balance sheet risk-taking, even after controlling for on-balance sheet … information. In the empirical application, I show that German equity funds have increased their risk-taking via synthetic leverage …

A large body of literature finds that managerial overconfidence increases risk-taking by financial institutions. This … paper shows that financial regulation can be effective at mitigating this type of risk. Exploiting regulatory changes … introduced after the financial crisis as a natural experiment, I find that overconfidence-induced risk-taking decreases in …