considered: equities and bonds. This choice permits us to account for two extreme alternative possibilities: taking risk in the …

The interaction of capital and risk for trading and treasury units is of primary interest in the corporate governance … of banks as it links operational profitability and strategic risk management. During the financial crisis, several banks …' trading units suffered significantly higher losses than their risk capital charged based on value-at-risk constraints. There …

, investment irreversibility, and time-varying risk premia. In my model, firms have a precautionary-savings motive and real options … to wait, both of which interact with time-varying uncertainty and are reinforced by state-dependent risk premia. My model … the observed firm behaviors in high uncertainty states, and (2) time-varying risk premia amplify the impact of the …

and S&P 500 index returns along with a CAPM-based risk measure. Our results indicate that even in the presence of …

This paper assesses the effectiveness of risk sharing mechanisms in Europe by breaking down the factor income … diversification boosts or dampens risk sharing. Using a panel of European countries, we compare the years before and after the 2008 … risk sharing in recent years and that a higher integration in the bond and equity markets significantly improves risk …