Topic
Financial risk
About: Financial risk is a research topic. Over the lifetime, 11899 publications have been published within this topic receiving 231404 citations. The topic is also known as: economic risk.
Papers published on a yearly basis
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TL;DR: In this paper, an overlapping generations model where investors trade in a firm's stock is considered and it is shown that asymmetric reporting of good and bad news is value relevant as it affects the allocation of risk among future generations of shareholders.
Abstract: This paper considers an overlapping generations model where investors trade in a firm's stock. Investment risk is partly determined by the volatility of the stock price at which current investors can sell their shares to the next generation of investors. It is shown that asymmetric reporting of good and bad news is value relevant as it affects the allocation of risk among future generations of shareholders.
73 citations
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TL;DR: In this paper, the authors investigated whether personality traits play a significant role in the decision to invest in energy efficiency in the residential sector and found that personality traits affect one-time, high-cost energy efficiency investments indirectly through environmental attitudes and risk preferences.
73 citations
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TL;DR: In this paper, the authors survey measures from different academic disciplines, including psychology, operations research, management science, economics, and finance, that have been introduced since 1973, and give four axioms that describe necessary attributes of a good financial risk measure and show which of the measures surveyed satisfy these.
Abstract: Recalling the class of risk measures introduced by Stone [1973], the authors survey measures from different academic disciplines—including psychology, operations research, management science, economics, and finance—that have been introduced since 1973. We introduce a general class of risk measures that extends Stone's class to include these new measures. Finally, we give four axioms that describe necessary attributes of a good financial risk measure and show which of the measures surveyed satisfy these. We demonstrate that all measures that satisfy our axioms, as well as those that do not but are commonly used in finance, belong to our new generalized class.
73 citations
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TL;DR: In this article, the authors evaluate the usefulness of financial disclosure from a user's perspective and conclude that current UK financial reporting practices are of limited help to users wishing to assess the scale of an institution's financial risk exposure.
Abstract: In 1998 the Accounting Standards Board (ASB) published FRS 13, ‘Derivatives and other Financial Instruments: Disclosures’. This laid down the requirements for disclosures of an entity’s policies, objectives and strategies in using financial instruments, their impact on its risk, performance and financial condition, and details of how risks are managed. FRS 13 became effective in March 1999, and this paper uses the 1999 annual reports of UK banks to evaluate the usefulness of disclosures from a user’s perspective. Usefulness is measured in terms of the criteria of materiality, relevance, reliability, comparability and understandability as defined in the ASB’s Statement of Principles (ASB, 1999). Our findings suggest that the narrative disclosures are generic in nature, the numerical data incomplete and not always comparable, and that it is difficult for the user to combine both narrative and numerical information in order to assess the banks’ risk profile. Our overall conclusion is therefore that current UK financial reporting practices are of limited help to users wishing to assess the scale of an institution’s financial risk exposure.
72 citations
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TL;DR: In this article, a stochastic model for refinery planning is proposed, where the profit is maximized taking into account revenues, crude oil costs, inventory costs, and cost of unsatisfied demand, and the model is tested using data from the Refinery owned by the Bangchak Petroleum Public Company Limited, Thailand.
72 citations