Strict liabilities prevails at major accidents. According to the Polluter Pays Principle,l it is the liable party who pays for any damage. The accidents may be very large, however, compared to the assets of the liable plant owner. The liable party may, therefore, simply go bankrupt and leave the...

The Legal Limits to Insurable Risk, Transactional Insurance Products,Legal and Regulatory Issues in Europe, Open Discussion...

Several of the risks currently faced by corporations are shaped by legal rules. Liability rules, for instance, determine the cases in which firms will incur economic losses, either because thay are obliged to compensate for the harm suffered by others, or because they are inflicted monetary...

When tort and insurance (both private and social) co-exist, coordination mechanisms are very relevant. Imperfect liability rules provide the setting to properly analyze the incentives that the coordination mechanisms induce for risk coverage and for precaution...

Insurance has to assess and manage emerging risks. Undertsanding emerging risks includes understanding the social construction of risk: for example, the ermgence of a disease or illness as a social process, not only as an epidemiological phenomenon. The social construction of risk - as Tom Baker...

Im Gegensatz zu rein national tätigen Unternehmen unterliegen multinationaltätige Unternehmen zusätzlichen Risiken. Neben der Identifizierung derartiger Risiken erfolgt in die-sem Beitrag die Entwicklung von Maßnahmen, mit denen sich solche zielgerichtet beeinflussen lassen.Neben...

In general, individuals will be interested in consumption of goods with “original”prices denominated in various currencies. Traditional risk management is nominally orientedand typically neglects this differentiated consumption preferences of investors. We outline therelevance of a consumption...

Topics on behavioral corporate finance are concerned with the consequences ofboundedly rational investors for optimal financial decisions by firm management. Aspects ofbounded rationality are relevant both for the theory and the practice of corporate finance. Onthe one hand, a new kind of...

We apply cumulative prospect theory and hedonic framing to evaluate discountreverse convertibles (DRCs) and reverse convertible bonds (RCBs) as important examples ofstructured products from a boundedly rational investor’s point of view. While commonexpected utility theory would also conclude...

Using a hand-collected sample of contracts and investment proposals from German venturecapital financing relationships, we analyze specific incentive conflicts. We apply indirect anddirect measures of these problems and extend the “direct” approach by Kaplan and Strömberg(2004) to a four-...