between policy uncertainty and corporate risk-taking. We show that high levels of policy uncertainty are associated with … to their own firm and by reducing firm-level risk-taking. Furthermore, our results support the hypothesis that CEO risk …

investment and expected returns. In imperfectly competitive industries, a firm's exposure to systematic risk is jointly affected … by its own investment strategy and the investment strategies of its industry peers, such that the dynamics of its …

. The result is a negative and economically significant relation between pension risk and corporate investment. The effect …Failure to correct for pension risk leads to upward-biased discount rate estimates in firms with pension risk exposure … is confined to investment decisions that require discount rate estimates. Moreover, it is stronger if project value is …

shocks to their borrowing cost. It develops a dynamic model of corporate investment and financing decisions subject to real … size distribution and replicates the untargeted negative relationship between firm size and investment rates and cash … holdings. Cash holdings help firms sustain investment when access to debt becomes costly or restricted. However, a shock to …

The interaction of capital and risk for trading and treasury units is of primary interest in the corporate governance … of banks as it links operational profitability and strategic risk management. During the financial crisis, several banks …' trading units suffered significantly higher losses than their risk capital charged based on value-at-risk constraints. There …

Risk is a vital concept to grasp when investing in a firm or project. It is also a key ingredient required to evaluate … debt financing employed, must be accounted for to correctly assess a project’s risk.There are different measures of risk … used by practitioners. The most widely used risk measure corporate finance is CAPM beta. It can be calculated as the co …

risk and to detect macrofinancial problems has become a central concern. In the United States, this concern has been … Crises ; Macroprudential Risk ; Debt-Deflation Process ; Ponzi Finance …

risk and to detect macrofinancial problems has become a central concern. In the United States, this concern has been …

We show that any objective risk measurement algorithm mandated by central banks for regulated financial entities will … result in more risk being taken on by those financial entities than would otherwise be the case. Furthermore, the risks taken …: continue regulating by enforcing risk measurement algorithms at the cost of occasional severe crises, regulate more severely …

This paper evaluates the model risk of models used for forecasting systemic and market risk. Model risk, which is the … periods, the underlying risk forecast models produce similar risk readings; hence, model risk is typically negligible. However … the reliability of risk readings. Finally, particular conclusions on the underlying reasons for the high model risk and …