Remove 2020 Remove Banking Remove Systematic Risk
article thumbnail

ESG Investing Clearly Serves Pecuniary Interests

Reynolds Holding

Corporate Environmental and Social Impacts Affect the Broader Economy When a company’s problems create volatility in the price of its assets, investors term the problems as “idiosyncratic risks.” Another level of risk affects the volatility of an entire portfolio. June 2020, [link]. [24] Available at [link]. [6] Choi, Mary C.

article thumbnail

Pay for Prudence

Reynolds Holding

We contribute to this debate by documenting the extent to which bankers’ pay contains prudence-related targets, the association between those targets and other incentives, and how the targets affect future bank risk-taking. PfP rewards managers for outcomes that lower credit risk, which is a central objective of bank supervision.

Banking 40
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Are European and American Approaches to Sustainable Corporate Governance All That Different?

Reynolds Holding

system is market-centric, aimed at raising capital from the public and so much more responsive to the preferences of investors, the EU system is bank-centric, meaning it is strongly tied to the provision of credit by banks. 72, February 2020, p. 17 of Regulation (UE) 2020/852. [8] While the U.S. Schanzenbach – R.H.

article thumbnail

Shadow SEC: The Value of an Independent SEC

Reynolds Holding

Regulatory changes introduce uncertainty, and their effects are further confounded by the ever-present unpredictability of markets even known variations, whether from unpredictability in inflation and interest rates driven by the Fed, or the basic requirements for capital-raising and deployment set by the SEC equate to risk. 3] [link]. [4]