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We examine risk taking when the bank's preferences exhibit smooth ambiguity aversion. Ambiguity is modeled by a second-order probability distribution that captures the bank's uncertainty about which of the subjective beliefs govern the financial asset return risk. Ambiguity preferences are...
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The financial sector has been one of the most profitable sectors of the Hungarian economy for years. The same financial sector which, in the nineties, underwent a painful and very expensive consolidation period. This matter of fact has drawn the researchers’ attention to that particular...
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variables directly related to the insurance product (e.g., a regulatory restriction of insurance acquisition costs) as well as … importance of insurance distribution in banks. Significant risk factors (statistically significant) which determine gross … cooperation between banks and insurers as well as the specificity of insurance products distribution (also local) in the …
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in the financial sector. The working hypothesis is that the insurance industry has improved its position, resulting in …
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Objective: The objective of the article is to empirically examine the predictors of ROA and ROE for banks and insurance … significant and negative for ROE. Banks earned lower return on their assets and higher return on their equity than insurance … for firms in the insurance industry. …
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