We examine whether the uncertainty related to environmental, social, and governance (ESG) regulation developments is … reflected in asset prices. We proxy the sensitivity of firms to ESG regulation uncertainty by the disparity across the … tail risk. The impact of the misalignment across the different dimensions of the ESG score is distinct from that of ESG …

paper shows that financial regulation can be effective at mitigating this type of risk. Exploiting regulatory changes … financial institutions subject to stricter regulation. Following the easing of these regulations, overconfidence-induced risk …A large body of literature finds that managerial overconfidence increases risk-taking by financial institutions. This …

paper shows that financial regulation can be effective at mitigating this type of risk. Exploiting regulatory changes … financial institutions subject to stricter regulation. Following the easing of these regulations, overconfidence-induced risk …A large body of literature finds that managerial overconfidence increases risk-taking by financial institutions. This …

) risk. It builds on a manually collected set of data on FX positions and the maturity structure of assets and liabilities of … average, face no liquidity risk and that exposure to FX risk is lower than commonly assumed. Linking risk exposure to … institutional characteristics, I find that legal status and regional affiliation are correlated with risk exposure while regulatory …

We analyze the treatment and impact of idiosyncratic or firm-specific risk in regulation. Regulatory authorities … regularly ignore firm-specific characteristics, such as size or asset ages, implying different risk exposure in incentive … regulation. In contrast, it is common to apply only a single benchmark, the weighted average cost of capital (WACC), uniformly to …

risk. In this model, banks face taxation, flotation costs of securities, and default costs and maximize shareholder value …

Is the perception of risk, as outlined and defined by the regulatory and supervisory community, shared by private … financial institutions? In this paper we assess a representative sample of recent publicly available risk perspectives and … outlooks, and study similarities and differences. We find that for established (traditional) risk themes there is relatively …

that such regulations distort risk-taking incentives, providing above-threshold firms with greater incentives to take risk … and below-threshold firms the opposite. Risk distortion varies nonlinearly as a function of the distance from the size … threshold, and is increasing in the magnitude of the regulatory costs. We test our model by examining changes in bank risk …