منابع مشابه
Risky Investments with Limited Commitment
Over the last three decades there has been a dramatic increase in the size of the financial sector and in the compensation of financial executives. This increase has been associated with greater risk-taking and the use of more complex financial instruments. Parallel to this trend, the organizational structure of the financial sector has changed with the traditional partnership replaced by publi...
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Could inflated credit ratings that provide new information have adverse ex-ante real effects? If so, why? In a debt-rollover game featuring a feedback loop, we show that when the risky projects have high upside returns, the credit rating agency’s (CRA) ex-ante real effects are negative, despite of its positive informational effects. This arises from the CRAs feedback effects: it strategically a...
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We consider a renewal jump-diffusion process, more specifically a renewal insurance risk model with investments in a stock whose price is modeled by a geometric Brownian motion. Using Laplace transforms and regular variation theory, we introduce a transparent and unifying analytic method for investigating the asymptotic behavior of ruin probabilities and related quantities, in models with light...
متن کاملTerm structures of discount rates for risky investments
There is still much confusion about which discount rates should be used to evaluate actions having long-lasting impacts, as in the contexts of climate change, social security reforms or large public infrastructures for example. Contrary to the existing literature that focuses on the discount rate for safe projects, this paper characterizes the term structure of discount rates for investment pro...
متن کاملInternational business research and risky investments , an analysis of FDI in conflict zones
The purpose of this paper is to examine the determinants of a firm’s strategy to invest in a conflict location. To the best of our knowledge, this has not been done before. We examine this using a standard model of international business, overlaid with the fundamental approach to corporate social responsibility. We start with the population of multinationals who have chosen to invest in low inc...
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ژورنال
عنوان ژورنال: Journal of Risk and Financial Management
سال: 2020
ISSN: 1911-8074
DOI: 10.3390/jrfm13120329