risk preference and firm risk (the volatility of firm performance measures such as stock return, earnings and operating … cash flows). My results show a negative association between the CEO risk aversion (as measured by realized performance on … inside debt) and the volatility of firm market performance: Firms with risk-averse CEOs have experience less stock price …

We propose a new theory of suboptimal risk-taking based on contractual externalities. We examine an industry with a … of their incentive provision on the average effort. During booms, they over-incentivise managers, triggering a rat …-race in effort exertion, resulting in excessive risk relative to the second-best. The opposite occurs during busts. -- Stock …

We estimate how an acquiring firm's risk changes depending on whether the market initially judges the acquisition to be …, acquisitions judged negatively by the market result in a 5% increase in total risk, while acquisitions judged positively by the … market feature a 30-basis-point increase in total risk. We found the median acquisition to be value creating, not value …

Purpose: This study examines the influence of individual blockholders on corporate risk-taking using Korean-listed firm …, increase corporate risk-taking by monitor and discipline the controlling shareholder’s self-serving decisions. However, as … corporate risk-taking is an empirical question. Design/methodology/approach: To test research the question, this study examines …

This study analyzes the relation between CEO personal risk-taking, managerial risk-taking and total firm risk. We find … evidence that CEOs who possess private pilot's licenses, our proxy for personal risk-taking, are associated with riskier firms … compensation structure. We trace the source of the elevated firm risk to specific corporate policies including leverage and …

VaR models are useful only if they predict future risks accurately. Results show that risk managers can use SMA (100) and …Risk estimation or volatility estimation at financial markets, particularly stock exchange markets, is complex issue of … pricing of stocks and better risk management. The aim of this research is to test applicability of simple models like Simple …

We use an empirical model to categorize firms into portfolios based on operational risk. Using these portfolios, we … show that a strategy of buying firms in the highest decile of operational risk and shorting firms in the lowest decile of … operational risk earned a positive but insignificant risk-adjusted average return of 0.72% per month from 1990 to 2000. However …

loss risk. This study uses geometric Brownian motion (GBM) and Value at Risk (VaR; with the Monte Carlo Simulation approach …) on the daily closing price of JKII from 1 August 2020-13 August 2021 to predict the price and loss risk of JKII at 16 … 2.03%. Then, using VaR with a Monte Carlo Simulation approach, the loss risk prediction for 16 August 2021 (one …

The Security and Exchange Commission (SEC) has considered climate change as a risk issue since 2010. Several emission … financial performances, especially of listed companies. There are two ways these companies can disclose their transition risk … exposure and are not alternatives. One is the explicit declaration of exposure to transition risk in the legally binding …