This study provides evidence that firms adapt to macroeconomic, real, or financial economic uncertainty by decreasing their innovation activities. The way firms adapt is related to both internal factors such as patent types (exploratory versus exploitative patents), asset redeployability, patent...

Risk is a vital concept to grasp when investing in a firm or project. It is also a key ingredient required to evaluate the cost of capital and perform a valuation. An organization’s capital structure, specifically the amount of leverage and debt financing employed, must be accounted for to...

The report analyzes the bank's credit risk over five years from 2013 to 2017. Through the analysis of this study, the bank's credit risk analysis and comparison. The results of the research show that the performance of the bank is influenced by credit risk and macroeconomics

This paper examines the implications of leverage for corporate risk taking in a dynamic N-period model. In each period, there is an identical, standard risk-shifting problem. Leverage creates two inefficiencies. First, we confirm the standard intuition by which high leverage leads firms to take...

In addition to its well-documented alignment effect, managerial ownership may also value-destroying effects by shifting risk to managers and encouraging risk-substitution; that is, managers with relatively undiversified personal portfolios tend to pass up profitable projects with high...

This study examines the effect of family management, ownership, and control on capital structure for 523 listed and unlisted Colombian firms between 1996 and 2006 (5,094 firm-year observations). The study finds that when families are involved in management, debt levels tend to be lower for...

This research looks into the impact of risk management on CIMB Bank's performance. This study's data originates from DataStream and CIMB Bank Malaysia's annual report. The study sample encompassed a 5-year study period. Bank performance, which is oxidised by ROA and ROE, and risk management,...

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...

The “low risk anomaly” refers to the empirical pattern that apparently high-risk equities do not earn commensurately high returns. In this paper, we consider the possibility that the risk anomaly represents mispricing, not a misspecification of risk, and develop the implications for...

Ownership type, legal system evolution and their interaction significantly affect the incentives and behaviors of independent directors. We use the 2019 Securities Law revision as an exogenous shock to examine how state-owned enterprises (SOEs) versus non-SOEs and their independent directors...