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and risks. This has been amplified by the lack of a sound operational risk estimate due to the scarcity of the relevant … Dragon Kings regime for the largest events. With respect to risk assessment, our main finding is that risk is dominated by …
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are a function of risk-free rates and a bank-specific risk premium. Cost of equity estimates declined steadily across all … countries from 1990 to 2005 but then rose from 2006 onwards. The fall in the cost of equity reflects (i) the decrease in risk …-free rates over this period, and (ii) a decline in the sensitivity of bank stock returns to market risk (the CAPM beta) in all …
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structure. Our sample comprises 706 European firms from France, Germany, Italy and the U.K. over the period from 1983 to 2002 … interest rates are low and the risk of disruptions in the global financial system are negligible. We also document that capital …
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Uncertainty affects employers' decisions on labour workforce, as it does on capital. We exploit differences on how firms adjust their labour work-force when uncertainty increases. Using data from the Wage Dynamic Network Survey for 25 European countries, we first construct, opposite to usual...
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