Handschin, Lukas. (2012) Risk-based equity requirements: how equity rules for the financial sector can be applied to the real economy. Journal of Corporate Law Studies, Vol. 12, no. 2. pp. 255-293.
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Abstract
It is undisputed that rules are necessary to cope with the risks of failing financial institutions in the financial sector. These rules link the risk profile of a financial institution to the quanti-tative and qualitative properties of its capital. In the real economy the discussion proceeds from the opposite direction, putting the necessity of a minimal capital and its regulation into question. This essay shows however, that even for the real economy, rules are in place which require the board of a company to adjust the risk profile to the level and structure of the com-pany’s equity and vice versa. The relationship between risk-bearing ability and equity leads to a set of principles and rules on how to determine the correct amount of equity. The essay de-scribes these rules and their procedural enforcement based on company and accounting law rules.
Faculties and Departments: | 02 Faculty of Law > Departement Rechtswissenschaften > Ehemalige Einheiten Rechtswissenschaften > Ordinariat Privatrecht, insb. Gesellschafts- und Rechnungslegungsrecht (Handschin) |
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UniBasel Contributors: | Handschin, Lukas C. |
Item Type: | Article, refereed |
Article Subtype: | Research Article |
Publisher: | Hart |
Note: | Publication type according to Uni Basel Research Database: Journal article |
Language: | English |
Identification Number: | |
edoc DOI: | |
Last Modified: | 31 Dec 2015 10:51 |
Deposited On: | 04 Jan 2013 08:37 |
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