Although corporate finance theory suggests how adverse shocks influence shareholder preferences toward corporate risk … corporate boards to reduce the risk-taking incentives of CEO compensation. However, this pattern is not uniform. Financially … incentives with changing shareholder risk preferences …

We argue that incentives to take equity risk ("equity incentives") only partially capture incentives to take asset risk … ("asset incentives"). This is because leverage, while central to the theory of risk shifting, is not explicitly considered by … equity incentives. Employing measures of asset incentives that account for leverage, we find that asset risk …

The paper investigates how management board composition of banking institutions impacts their risk-taking behavior in …-national directors and proportion of their attained education on four different bank risk proxies. We build a unique data set comprising … increase bank risk measured by profit volatility and decrease bank stability captured by Z-score. Similarly, a larger …

of firm-specific risks. Whereas globalisation has increased firm-specific risk by intensifying competition, globalisation … of capital markets has also greatly increased the scope for diversification of firm-specific risk. Diversification of … this risk on the capital market is an efficient form of social insurance. Reducing the claims of workers on the surplus of …

, evident in data from both the U.S. and Europe. Firms with medium leverage avoid risk to preserve the option of issuing safe … by debt-holders due to future risk-taking incentives. Our model offers new insights on the interaction between companies …' debt financing and their risk profiles. …

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. …

This paper implements a novel model-free methodology to measure skewness risk premia in individual stocks. The … skewness risk premium in individual stocks. The risk premium massively increased after the 2008/2009 financial crisis due to an … increase in the price of put options in individual stocks. Part of this skewness risk premium is idiosyncratic. Frictions on …

This paper addresses the trade-off between additional loss-absorbing capacity and potentially higher bank risk … increase their risk-taking. This increase in risk-taking however, should be more than outweighed by the benefits of higher …