-up the manager of the representative firm should always make production-investment decisions that conform to the risk … aversion of stockholders and then use financing decisions to offset any effect of a change in operating risk on the market …

conversion on the risk-taking behaviour of the issuing bank. We also test for regulatory arbitrage: do banks try to maintain risk … sample selection bias, we show that CoCo bonds issuance has a strong positive e↵ect on risk-taking behaviour, particularly … amplifies the impact of CoCo bonds on risk-taking. …

-levering procedure is around for the case of risk-free debt. The procedure for risky debt is much less clear even under very simplifying …

risk. In this model, banks face taxation, flotation costs of securities, and default costs and maximize shareholder value …

risk to managers and encouraging risk-substitution; that is, managers with relatively undiversified personal portfolios … tend to pass up profitable projects with high idiosyncratic (firm-specific) risk in favor of less-profitable projects that … have greater aggregate (market) risk. Using parametric and semi-parametric estimation methods, we examine how managerial …

-making measures that capture firm, investment, and financial risk. We report evidence that CEOs and firms who attract greater media … uncertainty are more risk-seeking. Media uncertainty is positively associated with future stock return volatility, more risky … investment and higher financial risk. However, media uncertainty is associated with lower capital expenditure and reduced free …

risk taking. One of the objectives is the motivation of further research on the topic. Risk-averse managers hold less … diversified portfolios and, thus, tend to take less risk than optimal for shareholders. More option grants may encourage risk … mitigating overall risk-taking incentives. The net effect of options on risk-taking behavior is, therefore, ambiguous and calls …