liability exacerbates the incentive problem even further. A Limited Seniority Rule, where the firm may issue senior debt up to …. Shareholder liability, mandatory liability insurance and punitive damages are also discussed …

incentives to reduce risk of various ways of treating such uncertainty under the liability system are identified using a … a criterion for determining liability may adversely affect behavior: parties might face a diminished burden of liability … (if their probability of causation systematically fell below the threshold) and thus do too little to reduce risk; or they …

This paper models a firm's rollover risk generated by conflict of interest between debt and equity holders. When the …

(self-protection) or size (self-insurance) of a loss. However, in the case of liability risk, especially physician responses … with higher liability risk, where physicians would have greater incentive to insure against financial risks. Our findings … generally that individuals self-insure against liability risk when insurance markets are incomplete …

We estimate the pricing of sovereign risk for sixty countries based on fiscal space (debt/tax; deficits/tax) and other … and economically important determinants of market-based sovereign risk. Although the explanatory power of fiscal space … emergence of TED spread as a key pricing factor. However, risk-pricing of the South-West Eurozone Periphery countries is not …

cope with risk. We also find evidence of a "pecking order" of coping methods in which savings appears to be first in the …

with greater wealth-at-risk are more likely to hold health insurance. The implicit insurance from bankruptcy distorts the …

betas, and loadings on value and small-cap risk factors than stocks with a low risk of failure. These patterns hold in all … size effects are compensation for the risk of financial distress …

Using the widely-cited Lee-Carter mortality model, we quantify aggregate mortality risk as the risk that the average … substantial mortality risk. We calculate that a markup of 3.7% on an annuity premium (or else shareholders%u2019 capital equal to … 3.7% of the expected present value of annuity payments) would reduce the probability of insolvency resulting from …