Reputation concerns in credit markets restrain borrowers' temptations to take excessive risk. The strength of these …

Reputational risk has become a critical concern for most organizations. Insurers, who rely on trust to generate … business, are particularly vulnerable. Maintaining a positive reputation, however, is costly, leading to the potential for … expectations, which we test using a rich data set on operational loss risk events. Results indicate that passage of the Sarbanes …

What determines investors' risk-taking across macroeconomic cycles? Researchers have proposed rational expectations … models that introduce countercyclical risk aversion to generate the empirically observed time variation in risk-taking. We …

that decision-makers tend to form beliefs that justify the previous investment decisions. A stronger risk taking motivates … more optimistic beliefs, in particular if it leads to losses. Sharing the responsibility for the risk taking reduces the … bias in the beliefs and this helps decision-makers to reduce the risk taking and limit the losses. The results suggest that …

We provide a model that can explain empirically relevant variations in confidence and risk taking by combining horizon …-dependent risk aversion (“anxiety”) and selective memory in a Bayesian intrapersonal game. In the time series, overconfidence is more … prevalent when actual risk levels are high, while underconfidence occurs when risks are low. In the cross section, more anxious …

investigating known-risk gambles and ambiguous gambles have systematically used the urn context. Little systematic research has …