Similar Search Results

Basel III and CEO compensation in banks : pay structures as a regulatory signal

Eufinger, Christian; Gill, Andrej - 2013

This paper proposes a new regulatory approach that implements capital requirements contingent on managerial compensation. We argue that excessive risk taking in the financial sector originates from the shareholder moral hazard created by government guarantees rather than from corporate...

Persistent link: https://www.econbiz.de/10010226049

Incentive-based capital requirements

Eufinger, Christian; Gill, Andrej - 2016 - Last revised: May 20, 2016

by curbing risk-taking incentives, the higher the leverage the bank is permitted to take on. Consequently, the risk …

Persistent link: https://www.econbiz.de/10011539591

Leverage and risk-taking in a dynamic model

Berg, Tobias; Heider, Florian - 2024

This paper examines the dynamic relationship between firm leverage and risktaking. We embed the traditional agency … problem of asset substitution within a multi-period model, revealing a U-shaped relationship between leverage and risktaking …, evident in data from both the U.S. and Europe. Firms with medium leverage avoid risk to preserve the option of issuing safe …

Persistent link: https://www.econbiz.de/10014584403

Mortgage debt and entrepreneurship

Bracke, Philippe; Hilber, Christian; Silva, Olmo - 2015

Persistent link: https://www.econbiz.de/10011402774

Twin picks : disentangling the determinants of risk-taking in household portfolios

Calvet, Laurent E.; Sodini, Paolo - 2013

This paper investigates risk-taking in the liquid portfolios held by a large panel of Swedish twins. We document that the portfolio share invested in risky assets is an increasing and concave function of financial wealth, leading to different risk sensitivities across investors. Human capital,...

Persistent link: https://www.econbiz.de/10010225980

Interbank network and bank bailouts : insurance mechanism for non-insured creditors?

Eisert, Tim; Eufinger, Christian - 2013

This paper presents a theory that explains why it is beneficial for banks to engage in circular lending activities on the interbank market. Using a simple network structure, it shows that if there is a non-zero bailout probability, banks can significantly increase the expected repayment of...

Persistent link: https://www.econbiz.de/10010226037