This paper investigates the effects of financial globalization on bank risk by highlighting the role of rollover risk …. We extend the canonical rollover risk model by allowing an “active” bank manager to choose excessive risk-taking or … systemic risk-shifting actions. Financial globalization is characterized by an increase in investors' opportunity cost, which …

affect most assets - hence it qualifies as a state variable in the senseof the ICAPM and should carry a risk premium. We … Statesof America. Through Fama-Macbeth regressions we find a significant risk premium whichincreases in bad economic times when …

real effects resulting from a more efficient resource allocation predicted by theory. We find that: (a) financial … systemic real risk realizations; (c) financial integration fosters domestic financial development and the liquidity of equity … in the form of improved countries' growth prospects and lower systemic real risk …

superior. The intuition is simple: if underlying technologies are not convex, then risk-sharing can lower expected utility. The … likelihood of a bankruptcy cascade, "contagion," and systemic risk …