Pharmacist-run cholesterol risk management programme cost minimal

2001 ◽  
Vol 322 (1) ◽  
pp. 4-4
Keyword(s):  
Risk Management ◽  
Management Programme ◽  
Programme Cost ◽  
Risk Management Programme

Corporate Risk Management, Firms’ Characteristics and Capital Structure: Evidence from Bombay Stock Exchange (BSE) Sensex Companies

2018 ◽  
Vol 22 (4) ◽  
pp. 395-404
Author(s):  
Himanshu Joshi
Keyword(s):  
Risk Management ◽  
Capital Structure ◽  
Management Practices ◽  
Stock Exchange ◽  
Cash Flows ◽  
Equity Capital ◽  
Management Programme ◽  
Total Risk ◽  
Risk Management Programme ◽  
The Relationship

The current article takes account of the existing status of risk management practices of the Indian publicly listed companies and establishes the relationship of their risk management programme with the firms’ financial characteristics such as capital structure, assets’ size, asset tangibility, profitability and valuation multiples. To establish the relationship, a risk management score is constructed using publicly disclosed information for Bombay Stock Exchange (BSE) Sensex 30 companies. Results suggest that companies with more comprehensive risk management programmes are likely to enjoy lower costs of debt and have a higher propensity to invest in intangible assets. These firms with more comprehensive risk management programmes also demonstrate more stable cash flows, sales and net operating profit. It is also evident that firms that are deeply indulged in risk management activities are likely to have higher financial leverage as higher leverage increases a firm’s total risk, and their risk management activities act to balance that risk. Consequently, firms with extensive risk management activities can endure higher debt in their capital structure; hence, a risk management programme works as a substitute of equity capital.

Sign in / Sign up

Export Citation Format

Share Document