We examine the formation and evolution of corporate risk culture, i.e., the preferences towards risk and uncertainty … shared by a firm's leaders, as well as its effect on corporate policies. We document persistent commonality in risk attitudes … inside firms, which arises through the selection of leaders with similar preferences and is rooted in the founders' risk …

We construct a theoretical framework to investigate the impact of liquidity risk, in the secondary corporate debt … market, on corporate risk-taking preferences. Using closed-form solutions, our model shows that equity holders choose to … adopt high-risk projects upon the arrival of illiquidity shocks. This effect is more pronounced for firms with weaker …

determines the probability of bankruptcy. Proper governance drives sound and sustainable, value maximising decision-making, while … opportunism" and CEO dominance. Also, long-tenured CEOs and post-graduate directors possess contextually enriched latent knowledge … that may assist distressed firms, particularly if the trade-offs between director’s remuneration and governance is well …