Showing papers on "Financial risk published in 1974"
30 citations
Journal Article•
TL;DR: In this article, the authors consider some quantitative and qualitative aspects of concentration in shipping and find that over the years there has been an increasing tendency toward the growth of large firms as a product of high capital intensity, the risk of losses and government policies.
Abstract: This paper considers some quantitative and qualitative aspects of concentration in shipping. It finds that over the years there has been an increasing tendency toward the growth of large firms as a product of high capital intensity, the risk of losses and government policies.
8 citations
TL;DR: In this paper, risk is modeled as a chance constraint such that projects are rejected if the probability of "failure" is larger than some prescribed level, which has the effect of making all investment decisions chance-constrained programming problems.
Abstract: This paper presents a descriptive theory of risk that may be applied to capital budgeting decisions. The proposed theory is actually much more general than a theory of financial risk and is consistent with reported laboratory experiments. The essential feature of this theory is the role that risk descriptively plays as a constraint in the decision-making process. Specifically, risk is modeled as a chance constraint such that projects are rejected if the probability of “failure” is larger than some prescribed level. This has the effect of making all investment decisions chance-constrained programming problems, although some classes of problems have trivial solution procedures. In this context, risk serves to “strike out” or eliminate alternatives from consideration.
4 citations