to summarize what happens with the investments when the economy goes down. The greatest risk nowadays is the volatility …Investments represent the material support system of any sort of economic growth, they contribute greatly to ensuring a … of the structure and stage of development studied. Investments are easily affected by different factors or phenomena …

High-powered incentives may induce higher managerial effort, but they also expose managers to idiosyncratic risk. If … managers are risk averse, they might underinvest when firm-specific uncertainty increases, leading to suboptimal investment … decisions from the perspective of well-diversified shareholders. We empirically document that when idiosyncratic risk rises …

Investor aversion to risk varies over the course of the economic cycle. In the current recovery, the rebound in risk …-taking is near the top of the historical range. The pace of economic growth does not appear to explain the increase in risk … decline in the spread between risky and risk-free bonds. …

past gains and losses on investors’ risk aversion. The paper first presents a simple model examining how heterogeneous … changes in investors’ risk aversion affects portfolio decisions and stock prices. Second, the paper shows empirically that …

Loss aversion has been used to explain why a high equity premium might be consistent with plausible levels of risk … similarly to investors with high risk aversion. But if so, should these agents not perceive larger gains from international … diversification than standard expected-utility preference agents with plausible levels of risk aversion? They might not, because …