I test the market discipline of bank risk hypothesis by examining whether banks choose risk management policies that account for the risk preferences of subordinated debt holders. Using around 500,000 quarterly observations on the population of U.S. insured commercial banks over the 1995–2009 period, I document that the ratio of subordinated debt affects bank risk management decisions consisten...

For some firms, mergers and acquisitions (M&A) activity is part of a normal growth strategy in a competitive environment. Such firms accumulate a body of M&A knowledge that can be employed for the benefits of organisational continuity. Despite the significant risks associated with M&A failure, they are able to approach each new event with a set of experiential learnings that can better inform t...

Risk and value creation are closely related concepts. M&A may provide companies with an opportunity to grow, capture synergies, or accomplish other strategic objectives that can create value, but most transactions fail to accomplish their stated objectives. While the reasons behind the success or failure of a particular transaction depend on the circumstances, risks like incorrect valuation, ad...

A large part of information systems (IS) security approaches is technical in nature with less consideration on people and organizational issues. The research presented in this paper adopts a broader perspective and presents an understanding of IS security in terms of a social and organizational perspective. In doing so, it uses the communication of risk messages among the members of IT groups i...

The outbreak of the recent financial crisis reveals significant problems in current bank practices in conventional liquidity risk management. To avoid catastrophic consequences, a holistic view, which captures the dynamic interactions between liquidity and other financial variables, should be taken to help banks make business decisions. However, few studies in the literature have addressed this...

the present study aim is to offer a systematic method of assessing the credit risk of banks and also to identify key indicators using decision making trial and evaluation laboratory (dematel) technique as well as using logit regression in order to predict the credit risk of listed banks. the population of the study consists of the legal clients of the bank (ansar bank, bank saderat iran, bank m...

This paper investigates the factors affecting bank operational risk and bank equity risk for European banks during 1996 to 2005. Pooled-OLS and panel data analysis is applied to 84 financial institutions across 15 European countries using credit risk, interest rate risk, total equity, systematic risk and idiosyncratic risk. Off-balance sheet activities are positively correlated with all the ris...

While the traditional agency model assumes managerial risk aversion and underinvestment in high tech opportunities, the behavioural agency model allows for risk seeking by managers leading possibly to over-risky investment. Corporate governance mechanisms can correct both underand overrisky investment thereby ensuring value enhancing high tech acquisitions. Our study builds an empirical optimal...

Risk management is a very important thing to do in company. Small and large scale company will never avoid risk.. This study aims identify risks, measure risks analyze evaluate the faced by ABC bank Kediri City, Indonesia. uses risk analysis with qualitative descriptive method. The stages measurement research are as follows identification, assessment, response. results of interviews director em...