' performance. In this paper, we examine the relationship between uncertainty and incentives in which the risk-averse agent has the …

insurance by strictly-risk averse agents and risk-neutral firms when they enjoy limited liability. When exposed to a bankrupting …

makers. However, the existing literature lacks an investigation of the relation between dividends and bank risk taking. I … find a positive relation between default risk and payout ratios, although this relation is insignificant for very high … levels of default risk. Capital requirements and the desire to preserve the charter can offset the positive relation between …

the results from the model to cast light on (i) the conflicting empirical evidence on the risk-incentives tradeoff found …