When getting bad news is good news for banks
Rotating loan officers makes them more likely to report bad news about their portfolios, leading to more accurate internal reporting for lenders.
Global capital flows and financial crises
Drawing lessons from recent and historical financial crises, Charles Calomiris offers policy recommendations for managing risk in global financial markets.
Disclosing risk
Risk disclosure decisions can have a direct impact on a firm’s cost of capital. When is it in managers’ best interests to voluntarily reveal information about firm-specific risk?
Portfolio risk for institutional investors
As they turn increasingly to hedge funds, how can endowment and pension fund managers create investment strategies that best match their liability streams?
Bankruptcy codes and default risk
Do different national codes turn bankruptcy into a strategic tool for companies? And how will changes in the U.S. bankruptcy code affect companies' borrowing behavior?
Portfolio credit risk
You've measured your risk. Now, where did it come from? New research helps financial institutions to better understand and manage overall portfolio risk.
The psychology of risk
Regardless of their attitude — risk-averse vs. risk-seeking — people often make decisions based on an inaccurate perception of risk. Elke Weber explains how psychological and cultural factors shape risk perception.
Pricing Risk in Venture Capital
The sequence in which venture capitalists sign contracts — first with investors, then with entrepreneurs — creates a classic principal-agent problem. How does this three-way interaction affect the pricing of private equity deals?
Pricing event risk
Michael Johannes discusses the impact of events— such as interest rate jumps, employment reports and earnings announcements — on securities and derivatives markets.