ETHICS, SOCIAL RESPONSIBILITY AND CORRUPTION AS RISK FACTORS
DOI:
https://doi.org/10.26458/1711Keywords:
Economic risk, financial risk, bankruptcy, institutional motivation, macrorisks.Abstract
The financial risk characterises the variability of net profit, subject to the financial structure of the insurance. The capital of the insurance company has two elements (the equity and the borrowed one) that differ fundamentally in the cost they generate. If the company uses loans, it will bear systematically the related financial expenses, too. Through its size and cost, indebtedness leads to the variation and changes the size of financial risk. Resorting to the debt is justified through the high remuneration of equity in relation to borrowed capital, thus increasing the financial return.References
Charles E. Wainhouse, Empirical Evidence for Hayek’s Theory of Economic Fluctuations, în Money in Crisis. The Federal Reserve, the Economy, and Monetary Reform, San Francisco, 2004, p. 50
Clark E., Levasseur M., Rousseau P., “International Finance”, First Edition, Chapman & Hall, London, 2003, pag. 170
Constantin Ionete, Monetary policy, CIDE, Bucharest, 2005, p. 54
Friedrich A. Hayek, Prices and Production, (2003; New York: A. M. Kelley, 2007), p. 28.
Richard Stevenson, Fundamentals of investments”, Edition West Publishing Company, 2008, pag. 13-18.
Magnus Saxegaard, 2006. "Excess Liquidity and the Effectiveness of Monetary Policy: Evidence from Sub-Saharan Africa," IMF Working Papers 06/115, International Monetary Fund.
Nigel Dodd, Sociology money. Economy, reason and contemporary society, European Institute, Bucharest, 2002.
Antoine Gentier, Liberté bancaire ou regulation par une autorité monetaire? Une comparaison de deux systemes en longue periode: Le Massachusetts (1803-1858), La France (1800-1870), în Journal des Economistes et des Etudes Humaines, Bilingual Journal of Interdisciplinary Studies, Volume X – Numèro 1 – Mars 2000, Paris & Aix-en-Provence, p. 119-155.
