Purpose – The objective of this paper is to assess the degree to which Islamic banks in Brunei Darussalam use risk management practices (RMPs) and techniques in dealing with different types of risk. Design/methodology/approach – The researcher developed a questionnaire which covers six...

Purpose – Corporate risk management is one of the critical concerns of managers when they make investment allocation decisions among multiple projects. The purpose of this paper is to address corporate investment issues illustrated by target-beating in capital budgeting, and further discuss...

Purpose – The purpose of this paper is to investigate factors that safeguard or hinder the proper use of derivatives, with evidence from active users and controllers of derivatives. Design/methodology/approach – An online panel of 420 users and controllers of derivatives responded to a...

Purpose–The purpose of this paper is to build an easy to implement, pragmatic and parsimonious yet accurate model to determine an exposure at default (EAD) distribution for CCL (contingent credit lines) portfolios. Design/methodology/approach–Using an algorithm similar to the basic...

Purpose – Whether stock returns are linked to exchange rate changes and whether foreign exchange risk is priced in a domestic context are less conclusive and thus still subject to a great debate. The purpose of this paper is to provide new empirical evidence on these two inter-related issues,...

Purpose – This paper aims to carry out a comprehensive analysis of the influence of interest rate risk on Spanish firms at the industry level. Design/methodology/approach – The methodology employed has its origin in the two-index linear regression model proposed by Stone. This traditional...

Purpose – The purpose of this paper is to explore risk management models applied to electric power markets. Several Value-at-Risk (VaR) models are applied to day-ahead forward contract electric power price data to see which, if any, could be best used in practice. Design/methodology/approach...

Purpose – Risk aversion is an important characteristic associated with family firms. Despite growing literature in recent years, a consistent picture of what we know about the risk aversion of family firms has not evolved. Thus, this paper presents a systematic overview of whether family firms...

Purpose – Estimation of default and asset correlation is crucial for banks to manage and measure portfolio credit risk. The purpose of this paper is to find empirical relationship between the default and asset correlation with default probability, to understand the effect of systematic risk....

Purpose – The purpose of this paper is to examine the valuation effect of derivatives use in the French market using a sample of 250 non-financial firms over the period 2000-2002. Design/methodology/approach – The approach taken is application of linear regression framework and panel data...