The topic of risk incorporates a variety of definitions within different fields such as psychology, sociology, finance …, and engineering. In academic finance, the analysis of risk has two major perspectives known as standard (traditional …) finance and behavioral finance. The central focus of standard finance proponents is based on the objective aspects of risk …

The Board of Directors' role in risk oversight has come under increased scrutiny, resulting in shareholder lawsuits …, increased regulation, and more extensive disclosure and listing requirements. While theory predicts that Board risk oversight … can benefit stakeholders by mitigating risk-related agency conflicts, critics argue that changes in Board practices in …

. Using a sample of US non-financial firms, we show that an increase in risk-taking incentives in CEO pay is associated with a … effects on debtholders' wealth. Further, our findings are stronger for firms with a higher default risk where coordinated … negative influence of CEO risk-taking incentives on debtholder wealth thus highlighting the advantages of lower coordination …

This paper conducts a systematic analysis of the effect of CEO tenure on risk-taking. We document an overall positive … relation between tenure and risk-taking. The results are inconsistent with viewing tenure primarily as an indicator of human … and recent theoretical work, we show that the effect of CEO tenure on risk-taking depends on the information asymmetry …

between different CEO compensation components and firms' investment policy and firm risk. Specifically, the proportion of CEO … incentive for CEO to take risk on R&D investment and firm focus …

corporate risk-taking decisions. Higher taxes reduce expected profits more for risky projects than for safe ones, as the … government shares in a firm's upside but not in its downside. Consistent with this prediction, we find that risk taking is … sensitive to taxes, albeit asymmetrically: the average firm reduces risk in response to a tax increase (primarily by changing …

We present a model where bank assets are a portfolio of risky debt claims and analyze stockholders' risk … increases, risk shifting by borrowers increases, even if their leverage is unchanged (zombie lending). (2) While the literature … increase prevails through a second channel: an increase in risk shifting. (3) Risk shifting decreases with the diversification …

corporate risk-taking decisions. Higher taxes reduce expected profits more for risky projects than for safe ones, as the … government shares in a firm's upside but not in its downside. Consistent with this prediction, we find that risk taking is … sensitive to taxes, albeit asymmetrically: the average firm reduces risk in response to a tax increase (primarily by changing …

Purpose: The purpose of this paper is to theoretically examine the risk-taking decision of corporate defined benefits … incorporate the fact that in some cases the optimal solution is in the middle range. Therefore, the corporate risk-taking behavior …