The aim of this special issue is to present papers discussing the lessons learned from the recent financial crisis of 2007-2009, focusing on banking, executive compensation and risk management. In line with the journal’s objective to turn theory into practice, we particularly welcome papers with practical implications.
Many financial sector and regulatory practices contributed to the recent financial crisis, but amongst these were important failures in risk management practices and weakness in compensation and governance policies in the financial industry. Potential causes may include failures in rating agencies practices, capital adequacy, liquidity management, portfolio credit risk management and counterparty credit risk management. Some of these failures can be linked to conflicts in incentives that led to excessive risk-taking.
Topics include but are not limited to:
- Incentives and bank performance: effect of compensation incentives on firm value or effect of compensation incentives on managerial behaviour
- Bank regulation: goals, tools and lessons
- Incentives and risk management - how does the state resolve conflict of interest when it is an owner and a regulator? Were financial sector compensation and governance important causes of the financial crisis? What reforms are needed?
- Is there a need for a new approach to regulation and supervision to ensure financial system stability?
- Portfolio credit risk management - improvements in rating agency models and governance processes
- Capital and liquidity management - will Basel III achieve its intended objectives?
- Systemic risk management - will new regulatory frameworks be effective in systematically identifying and regulating important financial institutions?
1-2 page abstract: 9 September, 2011
Confirmation of interest: 30 September, 2011
Submission of manuscripts: 11 October, 2011
Notification to authors: 16 December, 2011
Final versions due: 26 December, 2011