Purpose - The purpose of this paper is to show how the influence of the diffusion speed of a financial innovation (FI) increases the operational risk (OR) in any business line with different rate.Design/methodology/approach - A stochastic model is considered presenting the influence of diffusion...

Purpose – The purpose of this study is to investigate the association between corporate risk and the interaction between CEO incentive compensation and CEO overconfidence.Design/methodology/approach – This empirical study performs random and fixed effects regression analysis. It uses...

Purpose – Whether stock returns are linked to exchange rate changes and whether foreign exchange risk is priced in a domestic context are less conclusive and thus still subject to a great debate. The purpose of this paper is to provide new empirical evidence on these two inter-related issues,...

Purpose – This paper aims to carry out a comprehensive analysis of the influence of interest rate risk on Spanish firms at the industry level. Design/methodology/approach – The methodology employed has its origin in the two-index linear regression model proposed by Stone. This traditional...

Purpose – The purpose of this paper is to explore risk management models applied to electric power markets. Several Value-at-Risk (VaR) models are applied to day-ahead forward contract electric power price data to see which, if any, could be best used in practice. Design/methodology/approach...

Purpose – This study aims to examine the stock returns distributions in ten countries in the periods before and after the global financial crisis (GFC) to evaluate how well the empirical distributions conformed to the extreme value theory (EVT) which underlies a family of risk management...

Purpose - This study seeks to investigate the sensitivity of stock returns at the industry level to market, exchange rate and interest rate shocks in the four major European economies: France, Germany, Italy, and the UK. Design/methodology/approach -The paper utilises the methodology of Campbell...

Purpose -Based on basic financial models and reports in the business press, exchange rate movements are generally believed to affect the value of nonfinancial firms. In contrast, the empirical research on nonfinancial firms typically produces fewer significant exposures estimates than...

Purpose - The purpose of this paper is to re-examine the relationship between real investment and stock prices for the USA for 1960-2005 in view of distinct economic regimes during the 40-year period. Design/methodology/approach - The paper employs simple models of investment, checks for...

Purpose -The purpose of this paper is to verify recovery risk management capabilities by lessors. It tests several hypotheses and finds out interesting specific results for lessors. Design/methodology/approach -The approach is empirical: two different database of leasing contracts are analysed...