Working Paper
Competition Theory of Risk Management Failures
We study a model in which firms compete preemptively for trading opportunities and risk management introduces latency in trading. As the time pressure...
Read moreCareer Risk and Market Discipline in Asset Management
We establish that the labor market helps discipline asset managers via the impact of fund liquidations on their careers. Using hand-collected data on...
Read moreESG Shareholder Engagement and Downside Risk
We show that engagement on environmental, social, and governance issues can benefit shareholders by reducing firms’ downside risks. We find that the...
Read moreUse of AI by Financial Players: The Emerging Evidence
Financial supervisors as well as financial intermediaries increasingly rely on AI. However, little remains known about the scope and...
Read moreBanks, Government Bonds, and Default: What do the Data Say?
We analyze holdings of public bonds by over 20,000 banks in 191 countries, and the role of these bonds in 20 sovereign defaults over 1998-2012. Banks hold...
Read moreCorporate Social Responsibility and Firm Risk: Theory and Empirical Evidence
This paper presents an industry equilibrium model where firms have a choice to engage in corporate social responsibility (CSR) activities. We model CSR...
Read moreIt's Not So Bad: Director Bankruptcy Experience and Corporate Risk-Taking
We show that firms take more (but not necessarily excessive) risks when one of their directors experiences a corporate bankruptcy at another firm where...
Read moreRisk Mitigating versus Risk Shifting: Evidence from Banks Security Trading in Crises
We show that risk-mitigating incentives dominate risk-shifting incentives in fragile banks. We study security trading by banks, as banks can easily...
Read moreLabor Representation in Governance as an Insurance Mechanism
We hypothesize that labor participation in governance helps improve risk sharing between employees and employers. It provides an ex-post mechanism to...
Read moreMandatory Governance Reform and Corporate Risk Management
Using the Sarbanes-Oxley Act of 2002 as a quasi-natural experiment to identify the impact of corporate governance reform on foreign exchange risk...
Read moreMandatory Corporate Climate Disclosures: Now, but How?
Mitigating the worst consequences of climate change by transitioning to a net zero economy requires investment on a large scale. Directly pricing...
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