Although a considerable amount of research has been undertaken on detrimental risk taking by managers, much less studies are devoted to endogenizing risk choices in the context of corporate project financing and in the presence of financial guarantees. A firm's risk appetite increases greatly...

This paper analyses the effects of the maturities of credit-enhanced debt contracts on the value of an insurer's loan guarantee portfolios. We propose a contingent-claims model, that not only includes important features such as coupon payments and absolute priority violations, but also allows...

In this paper, I study the equilibrium implications when some investors in the economy overweight a subset of stocks within their portfolio. I find that the excess returns for the overweighted stocks are lower, all else being equal. This has strong testable implications for stock returns. In the...

We use contingent claims analysis to evaluate portfolios of vulnerable private loan guarantees and to investigate their risk diversification properties. We find that for plausible baseline values of the parameters, the diversifiable credit risk can be eliminated in a portfolio of ten insured...

The recent mobile money innovation has experienced strong development and has been a key tool for financial inclusion in sub-Saharan Africa. Even holders of formal financial accounts have adopted it widely. Based on a sample of 6,891 households in the West African Economic and Monetary Union...

This paper examines the relationship between FDI inflows and welfare improvement in North African countries. Using net per capita FDI inflows and the UNDP's HDI as the principal variables, our analyses confirm the positive and strongly significant relationship between net FDI inflows and welfare...

This study identifies the factors affecting the ratings assigned to Canadian firms by the rating agency Standard and Poor's, and proposes a multinomial logit model to predict ratings. We first propose a two-class model which classifies ratings as either investment or speculative grade. We then...

Using quarterly financial statements and stock market data from 1982 to 2010 for the six largest Canadian chartered banks, this paper documents positive co-movement between Canadian banks' capital buffer and business cycles. The adoption of Basel Accords and the balance sheet leverage cap...