Financial Regulation and Its Impact on Corporate Risk Management: Exploring How Regulatory Changes, like Basel III and Dodd-Frank, Have Influenced Corporate Risk-Taking and Financial Stability

  • Unique Paper ID: 168460
  • Volume: 11
  • Issue: 5
  • PageNo: 1238-1246
  • Abstract:
  • Financial regulation plays a crucial role in shaping corporate risk management practices and ensuring the stability of financial systems. This paper explores the impact of significant regulatory changes, specifically the Basel III framework and the Dodd-Frank Act, on corporate risk-taking behaviors and financial stability. By examining the objectives and mechanisms of these regulations, the study analyzes how they influence corporate governance, capital allocation, and risk management strategies. Additionally, the paper addresses the challenges and unintended consequences of regulatory frameworks, particularly regarding compliance costs, market behavior, and the evolution of risk management practices. Ultimately, this paper aims to provide insights into the dynamic interplay between financial regulation, corporate risk management, and overall financial stability.

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