Risk Management and Value Creation

Torben Juul Andersen, Oliviero Roggi

    Publikation: KonferencebidragPaperForskningpeer review

    Abstrakt

    Corporate failures, periodic recessions, regional debt crises and volatile financial markets have intensified the focus on risk management as the means to deal with turbulent conditions. The ability to respond effectively to abrupt environmental impacts is considered an important source of competitive advantage. Yet, surprisingly little research has analyzed whether the presumed advantages of effective risk management are associated with superior outcomes. Here we present a comprehensive study of risk management effectiveness and the relationship to corporate performance based on more than 33,500 observations in 3,400 firms over the turbulent 20-year period 1991-2010. Determining effective risk management as the ability to reduce earnings and cash flow volatility, we find that both have significant positive relationships to lagged performance measures after controlling for industry effects, company size and financial leverage.
    OriginalsprogEngelsk
    Publikationsdato2012
    Antal sider19
    StatusUdgivet - 2012
    BegivenhedInternational Risk Management Conference 2012: Global Standards for Risk Measurement, Management and regulation - Rom, Italien
    Varighed: 18 jun. 201219 jun. 2012
    Konferencens nummer: 5
    http://www.irmc.eu/

    Konference

    KonferenceInternational Risk Management Conference 2012
    Nummer5
    LandItalien
    ByRom
    Periode18/06/201219/06/2012
    Andet<br/>
    Internetadresse

    Emneord

    • Corporate risk management
    • Organizational slack
    • Strategic response capabilities

    Citationsformater

    Andersen, T. J., & Roggi, O. (2012). Risk Management and Value Creation. Paper præsenteret på International Risk Management Conference 2012, Rom, Italien.