This paper investigates whether the mitigation framework established under the Equator Principles (EPs) is well-suited to address the manner in which socio-environmental risks may manifest within the context of non-recourse financing. The discussion begins with an examination of how the EPs...

This paper contributes to the empirical literature on risk shifting. It proposes a method to find out whether risk shifting is present in the banking industry and, if so, what type. The type of risk shifting depends on the group of debt holders to whom risk is shifted. We apply this method to...

Reputational risk has become a critical concern for most organizations. Insurers, who rely on trust to generate business, are particularly vulnerable. Maintaining a positive reputation, however, is costly, leading to the potential for moral hazard in the form of choosing a lowercost strategy...

This paper quantifies the impacts of individual house price risk on the pricing of equity release products. An individual house price model is employed to explain house price variations by heterogeneous characteristics. A Vector Auto-Regression (VAR) model is adopted to project the overall house...

In this study, we contribute to existing literature on momentum strategies by assessing a modified version of risk-return ratio based security selection criterion in an untested market – the KOSPI 200 over June 2006 to June 2012. Besides conventional risk-return ratios such as the Sharpe...

Product information which is beneficial for an individual consumer may hurt if disseminated widely. Even with rational expectations a fallacy of composition may occur if information leads to demand and price increases

Under an incomplete market, we develop a utility-based pricing model for equity and contingent convertible bond (CCB) while the straight bond is priced by an equilibrium pricing method. We derive the semi-closed-form solutions of the utility-based prices of equity and CCB and the explicit...

In this paper we investigate risk governance in 60 major international financial institutions and its influence on risk (calculated from equity returns). Risk governance has increased significantly during our sample period. We find the following variables to be important in determining risk...