We consider a decentralized supply chain in which a downstream manufacturer purchases components from an upstream supplier privileged with private information about supply disruption risk. The supplier's initial reliability, asymmetric to the manufacturer, is either low or high. We examine two...

Small and medium enterprises, or referred to herein as “SME,” may face possible extinction when falling behind the fierce competition in the marketplaces. Undoubtedly, SMEs business viability is the big question mark. Given the limited current capabilities, SMEs may face substantial hurdles...

Prior research documents a negative link between risk and executive holding of stock (generally positive link is observed for options). We find a similar negative relation for non-executive holding of stock. Our finding is consistent with the view that non-executives not only face significant...

I analyze a firm making a decision of whether to expose itself to risk in an exogenous parameter when the firm can change a choice variable after observing the realization of the exogenous parameter. For example, whether to choose an advertising campaign with a less certain outcome, when the...

Banks' fundamental concept relies on public trust. Since banks are also called the fiduciary financial institutions, public trust plays as an important role in the banking industry. This is mainly due to the fact that banks do not actually manage their own money. Instead, banks manage public...

Prior research documents a negative link between risk and executive holding of stock (positive link observed for options). We find a similar negative relation for non-executive holding of stock. Our finding is consistent with the view that non-executives not only face significant incentives to...

Risk management is the key point of project finance. Giving the general description of project finance on basic concepts, this paper cited an internationally accepted index system of project financing risk evaluation and financial ramification tools to measure and controls the project financing...

Drawing on theories of behavioral decision making and situational strength, we developed and tested a multilevel model that explains how the performance outcomes of personal initiative tendency depend on the extent of alignment between organizational control mechanisms and proactive...

In 2015, 196 Parties adopted the Paris Agreement to limit global warming to well below 2 degrees C compared to pre-industrial levels, and to achieve a low-carbon world by 2050. Revisions to international finance investment strategies are expected to be the mainstay of this ambitious objective....

Risk management has traditionally encompassed the systematic identification, analysis, strategy and response to a myriad of factors that impact the sustainability of a business. Effective risk management strategies attempt to foresee and manipulate future outcomes by proactively, rather than...