Evidence from German Companies of Effects of Corporate Risk Management on Capital Structure Decisions

2013 ◽  
Vol 25 (4) ◽  
pp. 97-103 ◽  
Author(s):  
Julita M. Bock
Keyword(s):  
Risk Management ◽  
Capital Structure ◽  
Corporate Risk Management ◽  
Corporate Risk

CAN RISK MANAGEMENT ADD VALUE?

1995 ◽  
Vol 35 (1) ◽  
pp. 740
Author(s):  
D. C. Shimko
Keyword(s):  
Risk Management ◽  
Capital Structure ◽  
Risk Reduction ◽  
Quantitative Model ◽  
Management Decision ◽  
Imperfect Markets ◽  
Corporate Risk Management ◽  
Structure Program ◽  
Corporate Risk ◽  
The Impact

Proper risk management reduces risk, but does it necessarily add value for corporate shareholders? Modigliani and Miller argued in 1958 that the answer is 'no' in a perfect market setting. How risk management adds value in an imperfect markets setting is shown. In particular, the corporate risk management decision is linked to the leverage decision to measure the impact of risk reduction on shareholder value. A quantitative model is developed and is applied to five public commodity companies to calculate the value increase due to optimal risk management and leverage. Finally, the practical aspects of implementing a joint risk management and capital structure program are discussed.

Corporate risk management and speculative motives

2007 ◽  
Vol 10 (2) ◽  
pp. 47-72
Author(s):  
Gregory Brown ◽  
Zeigham Khokher
Keyword(s):  
Risk Management ◽  
Corporate Risk Management ◽  
Corporate Risk

Interest Rate Cycles and Corporate Risk Management

2009 ◽  
Author(s):  
Peter Christoffersen ◽  
Amrita Nain ◽  
Jaideep S. Oberoi
Keyword(s):  
Risk Management ◽  
Interest Rate ◽  
Corporate Risk Management ◽  
Corporate Risk

Mandatory governance reform and corporate risk management

2021 ◽  
Vol 68 ◽  
pp. 101935
Author(s):  
Ulrich Hege ◽  
Elaine Hutson ◽  
Elaine Laing
Keyword(s):  
Risk Management ◽  
Governance Reform ◽  
Corporate Risk Management ◽  
Corporate Risk

Choices and Best Practice in Corporate Risk Management Disclosure

2007 ◽  
Vol 19 (4) ◽  
pp. 82-93 ◽  
Author(s):  
Ekaterina E. Emm ◽  
Gerald D. Gay ◽  
Chen-Miao Lin
Keyword(s):  
Risk Management ◽  
Best Practice ◽  
Corporate Risk Management ◽  
Corporate Risk

Insurance: playing Russian roulette?

2021 ◽  
Vol 23 (3) ◽  
pp. 1-4
Author(s):  
Adam Bernstein
Keyword(s):  
Risk Management ◽  
Corporate Risk Management ◽  
Corporate Risk

Insurance is a product that no one wants to buy. However, it is essential, as it is not only legally mandated, but is also a matter of corporate risk management. The question is how homes get the best deal without cutting cover. Adam Bernstein advises on how homes can get the best deal without cutting cover.

Reconsidering contact risk and contractual risk management

2017 ◽  
Vol 59 (4) ◽  
pp. 504-521 ◽  
Author(s):  
Ralph Schuhmann ◽  
Bert Eichhorn
Keyword(s):  
Risk Management ◽  
Corporate Management ◽  
Corporate Risk Management ◽  
Content Type ◽  
Management Processes ◽  
Risk Management Process ◽  
Management Capacity ◽  
Risk Dimensions ◽  
Contractual Risk ◽  
Corporate Risk

PurposeThe aim of this paper is to pursue three objectives: to assess the extent to which theoretical concepts and corporate practice are reflecting the contract’s risk management dimensions; to identify ways to make full usage of the contract’s risk dimensions for risk management purposes; to overcome the isolation of the contract caused by its perception as a legal instrument by integrating its handling into the overall corporate management processes. Design/methodology/approachLiterature is analyzed regarding the contract’s roles as a source of risk and as a risk management device. Based on the relevant findings, it uses the Contractual Management Model to develop a concept that integrates all contract-related risk management processes in an enterprise. FindingsThe paper redefines the term “contract risk” in the light of modern understanding of contract functions and contract purposes. It shows that only Contractual Risk Management theory takes the management capacity of the contract fully into account. A Contractual Risk Management process is suggested which integrates all contract-related corporate management processes and aligns them to the requirements of transaction risk management and enterprise risk management. Originality/valueThe paper may guide executives to optimize corporate risk management processes through a better understanding of the risk potential of contract and of its risk management capacity. It provides a checklist of redefined contract risks as well as a concept that, for the first time, is aligning all contract-related management processes to support the corporate risk management system.

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