their risk assessments and outcomes to those from a simple methodology that relies on publicly available market data and … market data; (iii) This discrepancy arises due to the reliance on regulatory risk weights in determining required levels of … capital once stress-test losses are taken into account. In particular, the continued reliance on regulatory risk weights in …

-seeking behavior by firms. Firms with high liquidity risk are likely to use cash rather than credit lines for liquidity management … because the cost of monitored liquidity insurance increases with liquidity risk. We exploit a quasi-experiment around the … downgrade of General Motors (GM) and Ford in 2005 and find that firms that experienced an exogenous increase in liquidity risk …

risk. Current reporting standards for derivatives exposures are nevertheless inadequate for assessing these systemic risk … contributions. In this paper, I explain how a transparency standard, in contrast to the current standard, would facilitate such risk … lack of standardization, they cannot be aggregated to assess the risk to the system. I highlight the important contribution …

bankruptcy reduce corporate risk-taking. In cross-country analysis, we find that stronger creditor rights induce greater … performance. In countries with strong creditor rights, firms also have lower cash flow risk and lower leverage, and there is …

We argue that a firm's aggregate risk is a key determinant of whether it manages its future liquidity needs through …, firms with high aggregate risk find it costly to get credit lines from banks and opt for cash reserves in spite of higher … robust to variation in the proxies for firms' exposure to aggregate risk and availability of credit lines; works at the firm …