In addition to its well-documented alignment effect, managerial ownership may also value-destroying effects by shifting risk to managers and encouraging risk-substitution; that is, managers with relatively undiversified personal portfolios tend to pass up profitable projects with high...

We assess whether monetary policymakers follow systemic risk in adjusting monetary policy for the US. over a period spanning from 1960 to 2011. We evaluate the reactions of monetary policy variables during the corresponding periods of high and low systemic risk. We estimate a threshold Vector...