Abstract
Risk-taking by individual firms is difficult to evaluate empirically because risky actions and their outcomes are not reported in firms’ financial statements. An exception exists in the case of financial institutions which are regulated and insured by Government agencies. These agencies collect detailed information about portfolios, earnings, foreclosures, losses, reserves, and write-offs from individual firms.
Research underlying this report was supported by a grant from the National Science Foundation. Data analysed in this report were made available to me by the Federal Home Loan Bank Board. The Federal Home Loan Bank Board does not necessarily share any of the views expressed below. I am indebted to John Jevons for research assistance connected with the preparation of tables and diagrams. I of course assume full responsibility for any errors remaining in this paper.
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Hester, D.D. (1968). An Empirical Analysis of Risk-Taking by Firms in the Savings and Loan Industry. In: Borch, K., Mossin, J. (eds) Risk and Uncertainty. International Economic Association Conference Volumes, Numbers 1–50. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-15248-3_2
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