Purpose – When finance managers face decisions, they do not always make clinical evaluations using rational methodology, but systematically depart from utility maximisation. This article addresses biases that are related to risk propensity, and categorises them under five headings: decision...

Purpose – The purpose of this paper is to consider the impact on bank risk of portfolio diversification between traditional margin income and fee‐based income for banks operating in Australia. Design/methodology/approach – Considering several performance variables, this analysis compares...

Purpose – The purpose of this study is to explore the influence of founder families in medium‐sized manufacturing firms and to investigate the impact of such influence on risk management – more specifically foreign exchange hedging and speculation. Design/methodology/approach – This...

Purpose – This paper aims to extend the Fama and French (FF) three‐factor model in studying time‐varying risk premiums of Sector Select Exchange Traded Funds (ETFs) under a Markov regime‐switching framework. Design/methodology/approach – First, the original FF model is augmented to...

Purpose – The purpose of this paper is to investigate the relationship between liquidity and credit risk, and employ the findings to estimate the Incremental Risk Charge (IRC), the new credit risk capital add‐on introduced by the Basel Committee for banks' trading books. The IRC estimates...

Purpose – The purpose of this paper is to, first, analyse to what extent the default probability based on structural models provides additional information and that accounting ratios do not contemplate. Second, to design hybrid models by including the default probability from structural models...

Purpose The purpose of this paper is to shed light on the factors that affect microfinance institutions’ (MFI) credit risk. These factors include MFIs’ characteristics and country-level indicators. Design/methodology/approach This empirical study uses an unbalanced panel data of 638 MFIs...

Purpose – This paper seeks to address the risks for a main contractor firm's project business that arise from subcontractors' inter‐organizational relationships in complex‐ and dynamic‐project networks. Design/methodology/approach – Existing project risk management research neglects...

Purpose – The purpose of this paper is to identify best practices from high‐technology industries that face many of the same challenges around uncertainty, complexity, and risk that are faced by the pharmaceutical industry. Design/methodology/approach – This research has conducted an...

Purpose – The purpose of this paper is to highlight the main findings of a successfully defended doctoral thesis that studied factors or interventions causing the discrepancy between how adequate project risks should be managed and how project risks are actually managed....