The paper tests the effect of competition on bank risk-taking for a sample of up to 800 banks worldwide over the period … 1995-2010. Following the theoretical literature on bank competition and risk more closely than previous empirical research …, we measure competition at the bank level and separate the effects of competition in deposit and loan markets. We also …

of risk management failures to be the trifecta of (1) “boom” markets, (2) time-based competition, and (3) firms in which …

beliefs, we show that principals offer contracts that incentivize safe behavior when competition for managerial talent is low …. However, intense competition results in contracts that incentivize risk-taking. We find that factors that increase the … intensity of competition include greater search efficiency, larger project scales, and higher debt funding, all of which may be …

competition. The analysis is based on a model of market entry and shows that to prevent entry incumbent firms engage in risk … nature of competition in industries …

wealth). Because of hedging motives, wealth duration and uncertainty decrease systematic risk. If rent seeking and … competition are sufficiently high, a negative risk premium arises that resolves over time with learning. The model generates price … competition are intense …

Merger review in the United States has overlooked a significant competition harm: increasing risk. Mergers can increase … harming competition can be blocked under the Clayton Act. Risk should therefore be treated like innovation in merger review as …. When a merger increases risk because of a harm to competition, that increased risk is an antitrust harm and can therefore …

This study reinvestigates the theoretical relationship between competition in banking and banks' exposure to risk of … failure. There is a large existing literature that concludes that when banks are confronted with increased competition, they … regulators and central bankers, causing them to take a less favorable view of competition and encouraging anti …