weaker institutions, systemic risk depends critically on the financial health of stronger institutions in the contagion chain …

Many regulations are based on size thresholds. We develop a model that shows that such regulations distort risk …-taking incentives, providing above-threshold firms with greater incentives to take risk and below-threshold firms the opposite. Risk … regulatory costs. We test our model by examining changes in risk around the Dodd-Frank Act, a major regulation with size …

robust counterpart of classic most productive scale size model under uncertainty situations. Finally, a numerical example …

world's ostensible focus on risk management and risk-adjusted returns. We seek to explain how the concept of utility is both …

This paper empirically describes how the risk premiums of size portfolios vary with macro-economic fluctuations in the … price of risk at the portfolio formation dates, thereby explaining the lack of robustness involving the unconditional size … premium: Only portfolios formed in "bad" states - with price of risk among the largest 30% - earn significantly positive …

that such regulations distort risk-taking incentives, providing above-threshold firms with greater incentives to take risk … and below-threshold firms the opposite. Risk distortion varies nonlinearly as a function of the distance from the size … threshold, and is increasing in the magnitude of the regulatory costs. We test our model by examining changes in bank risk …

This paper investigates how cross-sectional micro-uncertainty influences the investment of small and large firms and … show less investment decline in times of heightened uncertainty. We provide empirical evidence for the underlying driver of … uncertainty lowers the investment of both single and multi-unit firms through a `wait-and-see' effect. For a multi-unit firm, on …