Modern societies are increasingly formed by social, economic and legal relations that dissolve the traditional boundaries of nation states. Transnational firms and other cross-border organizations and networks develop new modes of cooperation, thereby setting new standards of governance. At the...

Purpose – The paper seeks to examine whether or not wealth effects and changes in the systematic risk associated with the return structure of the Greek commercial chartered banks, investment firms and insurance companies resulted from the passage of the European Union Banking Directives over...

Purpose – The purpose of this paper is to present a competitive defender-attacker risk model that assumes a dual exponential relationship between defender (Ci) and attacker (Ai) resource allocation: vi(Ai,Ci)=e-aici-e-aiCi-?iAi. Design/methodology/approach – Network risk is defined in terms...

Purpose – The purpose of this paper is to find the optimal hedging strategy when an investor has budget constraints on both the initial capital and the future cash flow. Design/methodology/approach – The paper follows the utility minimization of the total cost, using convex utility functions...

Purpose – In the presence of capital market imperfections, risk management at the enterprise level is apt to increase the firm's value to shareholders by reducing costs associated with agency conflicts, external financing, financial distress, and taxes. The purpose of this paper is to provide...

Purpose – One of the agency conflicts between investors and managers in fund management is reflected by risk-taking behaviors led by their different goals. The investors may stop their investments in risky assets before the end of the investment horizon to minimize risk, while the managers may...

Purpose – The purpose of this research is to examine the degree to which the UAE banks use risk management practices and techniques in dealing with different types of risk. The secondary objective is to compare risk management practices between the two sets of banks....

Purpose – This paper aims to provide a comprehensive empirical assessment of major contemporary corporate hedging theories, i.e. financial theory, agency theory, stakeholder theory and new institutional economics. Design/methodology/approach – Hypotheses regarding the determinants of hedging...

Purpose – The objectives of this paper are to: define business risk; identify whether economic capital could be used to mitigate this risk; and investigate business-risk measurement methodologies. Design/methodology/approach – The paper analyzes definitions used in theory and practice and...

Purpose – To develop a new theory of portfolio and risk based on incremental entropy and Markowitz's theory. Design/methodology/approach – Replacing arithmetic, the mean return adopted by M.H. Markowitz, with geometric mean return as a criterion for assessing a portfolio, one gets...