Journal of Risk Finance: Volume 8 Issue 5

Intuition and surprise

Michael R. Powers

This editorial seeks to address the importance of intuition and metaphor in the construction of logical systems of thought.

Why hedge? Rationales for corporate hedging and value implications

Kevin Aretz, Söhnke M. Bartram, Gunter Dufey

In the presence of capital market imperfections, risk management at the enterprise level is apt to increase the firm's value to shareholders by reducing costs associated with…

Calibrating risk‐neutral default correlation

Elisa Luciano

The implementation of credit risk models has largely relied either on the use of historical default dependence, as proxied by the correlation of equity returns, or on risk neutral…

Prediction of bank failures in emerging financial markets: an ANN approach

E. Nur Ozkan‐Gunay, Mehmed Ozkan

The recent financial crises in the world have brought attention to the need for a new international financial architecture which rests on crisis prevention, crisis prediction and…

A generalized ROC approach for the validation of credit rating systems and scorecards

Stylianos Z. Xanthopoulos, Christos T. Nakas

The purpose of this article is to introduce Receiver Operating Characteristic (ROC) surfaces and hyper‐surfaces within a banking context as natural generalizations of the ROC…

Impacts of interval measurement on studies of economic variability: Evidence from stock market variability forecasting

Ling T. He, Chenyi Hu

The purpose of this study is to investigate the impacts of interval measured data, rather than traditional point data, on economic variability studies.

The rules of practical principles

Michael Mainelli