In this short paper we reformulate and extend Sandmo's (3) well known analysis of “capital risk” to include the effects of savings uncertainty on both the savings decision and the labor-leisure decision

This paper analyzes the labor supply decision of a single economic agent within the expected utility framework. Two formulations of the problem are considered: pure income uncertainty and wage rate uncertainty. In each case, the effects on the labor supply decision of changes in both expected...

In this paper we extend Scitovsky’s classic “A Note on Profit Maximization and its Implications” to a stochastic environment. Implications of the model with and without uncertainty are contrasted

We estimate how an acquiring firm's risk changes depending on whether the market initially judges the acquisition to be neutral, strongly negative, or strongly positive for the shareholders of the acquiring firm. We found that for an average neutral acquisition, the annualized standard deviation...

This paper investigates how the combination of preferences and biases impact the risk-value profile of acquiring firms. We find strong evidence that prior losses impact acquisition risk as firms with negative prior returns are more prone to become acquirers and make value destructive...