This paper provides evidence of risk‐shifting behavior in the investment decisions of
financially distressed firms. Using a real options framework, I show that shareholders' risk …

In a society based on private property, the core objective of a corpo-ration would seem
uncomplicated. The corporation is owned by shareholders and, like other property, exists to …

This paper examines the impact of corporate governance on corporate risk-management
activities in S&P 500 firms over the period 2004–2010 by measuring the characteristics of …

Modern option pricing theory was developed in the late sixties and early seventies by F.
Black, R. e. Merton and M. Scholes as an analytical tool for pricing and hedging option …

Given equity's convex payoff function, shareholders can transfer wealth from bondholders by
increasing firm risk. We test the existing hypothesis that convertible debt reduces this …

In this paper we present a model of executive compensation to analyze the link between
incentive compensation and risk taking. Our model takes into account the loss in the value of …

Higher default probabilities are associated with lower future stock returns. The anomaly
cannot be explained by strategic shareholder actions, traditional risk factors, characteristics …

Важнейшим направлением системы корпоративных финансов является финансовая
политика компании, включающая в себя разработку стратегических и тактических …

This article addresses the limited empirical evidence on risk-shifting behavior in industrial
firms, by focusing directly on asset volatilities implied from the US equity market. These are …

This paper introduces an analytically tractable method for the pricing of European and
American Parisian options in a flexible jump–diffusion model. Our contribution is threefold …