This study investigates the effect of underlying risk preferences on analysts' work-related decisions. Specifically, we … examine whether facial width-to-height ratio (fWHR), an innate personal characteristic that has been linked to financial risk …

income risk affects equity ownership turnover. A portfolio choice model with an income process extracted from survey data … risk. The model yields realistic estimates for the coefficient of relative risk aversion (= 3.09) and the discount factor …

Hedge fund managers' risk-taking choices are determined by their compensation structure. Most existing studies focus on … how the incentive fee and the high-water mark provision affect managers' risk-taking. We build a simple model to show that … managers' risk-taking is negatively related to their future management fees. Using fund-level data, we calibrate the present …

I provide a novel risk-based explanation for the profitability of momentum strategies. I show that past winners have … higher extra downside risk and lower extra upside risk (on top of the market-beta risk) than past losers. As a result, the … winner-minus-loser momentum portfolios are exposed to extra downside risk, but hedge against the upside risk, and this is …