In this paper we consider the operations of a non-financial corporation and present a novel risk-management framework … where the decision maker - the firm's manager - is risk averse. Critically, our framework (i) imposes risk aversion through … a generic class of tail risk constraints and (ii) considers explicitly the differences than can, and often do, exist …

We analyze the relation between firms' exposure to exogenous business risk and their financing choices, based on a … sample of firms for which we can measure such exposure. The results show that firms more exposed to exogenous risk use less … financing. The result is the opposite of that obtained for exogenous risk: we find a positive relationship between debt …

Through the lens of market participants' objective to minimize counterparty risk, we provide an explanation for the … of the benefits and potential pitfalls with respect to a single market participant's counterparty risk exposure when … elements can render central clearing harmful for a market participant's counterparty risk exposure regardless of the number of …

Through the lens of market participants' objective to minimize counterparty risk, we provide an explanation for the … of the benefits and potential pitfalls with respect to a single market participant's counterparty risk exposure when … elements can render central clearing harmful for a market participant's counterparty risk exposure regardless of the number of …