We investigate whether experiencing a natural disaster affects risk-taking behavior. We conduct standard risk games … flood or earthquake exhibit more risk aversion. Experiencing a natural disaster causes people to perceive that they now face … a greater risk of a future disaster. We conclude that this change in perception of background risk causes people to take …

We use a repeated survey of an Italian bank's clients to test whether investors' risk aversion increases following the … 2008 financial crisis. We find that both a qualitative and a quantitative measure of risk aversion increases substantially …

influence both the coefficient of relative risk aversion and the IEVSL. The presence of a consumption commitment, such as a home …

We use traded options on growth and value indices to test for clientele differences in risk preferences. Value … investors appear to have exhibited a higher average level of risk aversion than growth investors for two different time periods … with different levels of risk-aversion to switch between investment styles conditional upon the evolution of returns and …

correlate their risk exposures. Second, private borrowers may deliberately choose to increase their interest-rate sensitivity …

accomplished by borrowing or lending. Payout is not cut back to finance capital investment. Risk aversion causes managers to …We develop a dynamic agency model where payout, investment and financing decisions are made by managers who attempt to … maximize the rents they take from the firm, subject to a capital market constraint. Managers smooth payout in order to smooth …

We estimate risk aversion from the actual financial decisions of 2,168 investors in Lending Club (LC), a person …-to-person lending platform. We develop a methodology that allows us to estimate risk aversion parameters from each portfolio choice …. Since the same individual makes repeated investments, we are able to construct a panel of risk aversion parameters that we …

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 …