Liquidity and risk management

Bengt Holmström, Jean Tirole

Research output: Contribution to journalArticle

69 Scopus citations

Abstract

Firms and financial institutions are best viewed as ongoing entities, whose project completion may require renewed injections of liquidity. This paper proposes a contract-theoretic framework integrating three dimensions of corporate financing and prudential regulation: (1) liquidity management, (b) risk management, and (c) capital structure. It concludes with a preliminary assessment of recent regulatory approaches to the treatment of market risk.

Original languageEnglish (US)
Pages (from-to)295-319
Number of pages25
JournalJournal of Money, Credit and Banking
Volume32
Issue number3
DOIs
StatePublished - Aug 1 2000

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

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