argument that conservatism is an efficient governance mechanism to mitigate information risk and control for agency problems …

and the banks' failure probability. In the model, banks adopt the Value-at-Risk rule to make the capital structure … decisions and the risk of contagion is neglected. The paper finds that interconnectedness may either increase or decrease the …

selling activity before the 2008 short ban reflected financial companies' risk exposures in the subprime crisis. The evidence … suggests that short sellers sold short stocks that had the greatest asset and insolvency risk exposures, and that the short … disciplining effects of investors and may also serve as a counterweight to any perceived macro or systemic risk reduction benefits …

mitigate information risk and control for agency problems, and that shareholders benefit from it …

-movement of world stock exchanges. This study also investigates the relationship between herding and systemic risk, suggesting … that herding increases when systemic risk increases. Granger causality tests and Johansen's vector error-correction model … provide solid empirical evidence of a strong interrelationship between herding and systemic risk, entailing that herding …