We formalize the idea that the financial sector can be a source of non-fundamental risk. Households' desire to hedge … against price volatility can generate price volatility in equilibrium, even absent fundamental risk. Fearing that asset prices … may fall, risk-averse households demand safe assets from leveraged intermediaries, whose issuance of safe assets exposes …

eurozone. My results also suggest that these shocks are a plausible source of aggregate risk that could explain business cycle …

According to the financial press, firms with low leverage have lower distress risk due to their reduced exposure to the … risk and thus would be ideal for wealth preservation during declining market environment. We find that the leverage risk … factor. In contrast, the SRI class of stocks has the least sensitivity to leverage risk factor, suggesting they can be …

This study investigates whether and how financial constraints on firms affect the risk of their stock prices crashing …. We find strong evidence that financial constraints increase future stock price crash risk. This finding is robust to … risk is more prominent for firms with high abnormal accruals or with weak corporate governance and less pronounced for …