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Journal of Risk and Financial Management, Volume 17, Issue 1

January 2024 - 41 articles

Cover Story: We explore how expansionary monetary policy (EMP) influences bank loan loss provisioning. We find that banks’ discretionary loan loss provisions (DLLPs) increase during EMP periods. This effect is stronger for banks with greater risk taking, more influential stakeholders, lower ex ante transparency, and more stringent bank regulation, which is consistent with external stakeholders requiring conservative and timely loan loss provisioning. We also find that both the timeliness and the validity of banks’ loan loss provisions (LLPs) increase during EMP periods. Our results are robust to the use of instrumental variable estimation and exogenous variations in monetary policy. Lastly, we show that conservative loan loss provisioning discipline banks from excessive risk taking during EMP periods. View this paper
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Articles (41)

  • Article
  • Open Access
7 Citations
12,546 Views
21 Pages

A Comprehensive Approach to Bankruptcy Risk Evaluation in the Financial Industry

  • Samar Issa,
  • Gulhan Bizel,
  • Sharath Kumar Jagannathan and
  • Sri Sarat Chaitanya Gollapalli

The study presents a comprehensive approach to examining the potential risk of bankruptcies in financial sector organizations. This investigation explores 20 financial sector entities and evaluates their fiscal history from 2000 to 2018. The develope...

  • Article
  • Open Access
3 Citations
3,606 Views
48 Pages

The multifaceted interrelationship between petroleum prices and equity markets has been a subject of immense interest. The current paper offers an extensive review of a plethora of empirical studies in this strand of literature. By scrutinising over...

  • Article
  • Open Access
2 Citations
5,931 Views
19 Pages

We implement the VIX methodology on intraday data of a large set of individual equity options. We thereby consider approaches based on monthly option contracts, weekly option contracts, and a cubic spline interpolation approach. Relying on 1 min, 10...

  • Article
  • Open Access
8 Citations
4,539 Views
16 Pages

The complexities arising from disparate data sources, conflicting contracts, residency requirements, and the demand for multiple AI models in trade finance supply chains have hindered small and medium-sized enterprises (SMEs) with limited resources f...

  • Review
  • Open Access
1 Citations
4,461 Views
32 Pages

Portugal’s Crowdfunding: A Systematic Literature Review

  • Bruno Torres,
  • Zélia Serrasqueiro and
  • Márcio Oliveira

This study aims to analyze and classify the evolution of crowdfunding in Portugal from 2014 to 2020, addressing the central question, “What is the evolution of literature on crowdfunding and its research focuses in Portugal?”. Additionall...

  • Article
  • Open Access
1 Citations
1,921 Views
19 Pages

Of necessity, people make many investment decisions regarding their human resource stock early in their life cycle, long before outcomes predicated upon those choices are realized. Different choices involve very different initial effort and financing...

  • Article
  • Open Access
2 Citations
2,694 Views
19 Pages

The Financial Market of Indices of Socioeconomic Well-Being

  • Thilini V. Mahanama,
  • Abootaleb Shirvani,
  • Svetlozar Rachev and
  • Frank J. Fabozzi

This study discusses how financial economic theory and its quantitative tools can be applied to create socioeconomic indices and develop a financial market for the so-called “socioeconomic well-being indices”. In this study, we quantify s...

  • Article
  • Open Access
11 Citations
6,209 Views
25 Pages

Predicting Financial Inclusion in Peru: Application of Machine Learning Algorithms

  • Rocío Maehara,
  • Luis Benites,
  • Alvaro Talavera,
  • Alejandro Aybar-Flores and
  • Miguel Muñoz

Financial inclusion is a fundamental and multidimensional matter that has acquired importance on the global agenda in recent years. In addition, it is still a source of great interest and concern for lawmakers, international organizations, scholars,...

  • Article
  • Open Access
2,483 Views
25 Pages

Stockholder Wealth Maximization during the Troubled Asset Relief Program Period: Is Executive Pay Harmful?

  • Eddy Junarsin,
  • Rizky Yusviento Pelawi,
  • Jeffrey Bastanta Pelawi and
  • Jordan Kristanto

This study investigates governance mechanisms and their relation to firm value, i.e., executive compensation restrictions during the regulatory period and their effects on the performance of firms that received Troubled Asset Relief Program (TARP) fu...

  • Article
  • Open Access
2 Citations
4,155 Views
18 Pages

Statistical Analysis of Minsky’s Financial Instability Hypothesis for the 1945–2023 Era

  • Linh N. Phan,
  • Mario G. Beruvides and
  • Víctor G. Tercero-Gómez

Following the 2008 financial crisis, Hyman Minsky’s Financial Instability Hypothesis (FIH) emerged as a prominent financial theory to explain the occurrence of business cycles in the U.S. economy. There have been many theoretical, but few empir...

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J. Risk Financial Manag. - ISSN 1911-8074