reallocation of credit to other sectors or assets. This could generate greater systemic risk through unsustainable valuations or …

credit markets, view family firms as more risk-averse and that family firms invest more in low-risk (fixed-asset capital … expenditures (CAPEX)), than in high-risk investments (R&D expenditures) confirming their non-risk seeking behavior. …

liability and deposit insurance appear to give banks incentives for excessive risk-taking. Capital requirements can alleviate … this problem as banks are obliged to hold more capital which forces them to have more of their own funds at risk. But the … theoretical literature has much more to say on how banks determine their capital structure and portfolio risk and how capital …

This paper focuses on the legal environment, particularly the insolvency system, that would influence the success of … have to operate under a given insolvency regime after they acquire the bad assets, existing bankruptcy procedures have an …

uncertainty. The firm faces additional sources of uncertainty that are aggregated into a background risk. We show that the firm … always chooses its optimal debt-equity ratio to minimize the weighted average cost of capital, irrespective of the risk …. When the background risk is either additive or multiplicative, we provide reasonable restrictions on the firm's preferences …