monitor the over-emphasis on the maximization of short-term shareholder value without relativizing the risk taken to achieve …

. Using data of 160 countries for the period 1970-2007, this paper empirically tests these indirect effects of financial …

In our network analysis of 40 developed, emerging and frontier stock markets during 2006-2014, we describe and model … interconnectedness. Our results also link spillovers of escalating magnitude with increasing market size, market liquidity and economic …

systemic risk. Equity capital acts as a buffer against losses, and reduces incentives for excessive risk taking. Basel capital … lower capital requirements resulting in excessive risk taking. Furthermore, the bank and the CDS seller (insurer) prefer … high correlation in their returns and jointly shift the risk to the regulator. CDS can be traded at a price higher than its …

This work extends the contagion model introduced by Nier et al. (2007) to inhomogeneous networks. We preserve the … have only a surprisingly modest impact, we find a significantly enhanced contagion risk in networks containing institutions … amount. -- capital buffers ; contagion ; contagious defaults ; inhomogeneities ; network models ; financial system stability …