risk. Using a unique dataset of 295 PBOs and their consecutive SBOs in the UK, we analyse the risk level of financial … distress of the buyout rounds considering the Altman Z-Score. We find that SBOs reduce this risk of portfolio companies more … than PBOs during the holding period. Therefore, SBOs, in general, cannot be seen as riskier investments. However, risk of …

and managerial factors on post-merger default risk. Our results are consistent with the asymmetric hypothesis that … and industrial diversification play significant roles in affecting post-merger default risk. We find limited evidence … indicating the relevance of institutional quality and culture on default risk …

bondholders but does not control for the events' impacts on firms' credit risk. This may explain why many studies fail to identify …

Our goal is to document the causal impact of having a board-level risk committee (RC) and a management-level executive … designated as chief risk officer (CRO) on bank risk. The Dodd Frank Act requires bank holding companies with over $10 billion of … assets to have an RC, while those with over $50 billion of assets are additionally required to have a CRO to oversee risk …

This paper evaluates the model risk of models used for forecasting systemic and market risk. Model risk, which is the … periods, the underlying risk forecast models produce similar risk readings; hence, model risk is typically negligible. However … the reliability of risk readings. Finally, particular conclusions on the underlying reasons for the high model risk and …

We present a model where bank assets are a portfolio of risky debt claims and analyze stockholders' risk … increases, risk shifting by borrowers increases, even if their leverage is unchanged (zombie lending). (2) While the literature … increase prevails through a second channel: an increase in risk shifting. (3) Risk shifting decreases with the diversification …

The regulatory use of banks' internal models makes capital requirements more risk-sensitive but invites regulatory … arbitrage. I develop a framework to study bank regulation with strategic selection of risk models. A bank supervisor can … discourage arbitrage by auditing risk models, and implements capital ratios less risk-sensitive than in the first-best to reduce …