"This paper examines the implications of bank activity and short-term funding strategies for bank risk and returns …-interest income generating activities such as trading increases the rate of return on assets, and it may offer some risk …, although it can offer some risk reduction at commonly observed low levels of non-deposit funding. A sizeable proportion of …

We base a contracting theory for a start-up firm on an agency model with observable but nonverifiable effort, and …

This paper analyses the impact of public disclosure of banks’ risk exposure on banks’ risk taking incentives and its … their loan portfolio, public disclosure reduces the probability of banking crises. When asset risk is driven largely by … between asset risk and the deposit rate demanded by informed depositors. …

Recent empirical work suggests a strong connection between the incentives money managers are offered and their risk …-taking behavior. We develop a general model of delegated portfolio management, with the feature that the agent can control the … riskiness of the portfolio. This represents a departure from the existing literature on agency theory in that moral hazard is …