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Financial Risk Management – Influence Factors And New Trends

Author

Listed:
  • Laura Vasilescu

    (University of Craiova Faculty of Economics and Business Administration)

Abstract

Financial or corporate risk management is a part of the firm risk management with which deal with the financial risks, such as market risk, liquidity risk and credit risk. In the context of international financial crisis, a variety of factors are influencing the development of corporate risk management: the increased volatility and deregulation of financial markets; developments in information and communications technology; the complexity of financial products and so on. The objective of risk management for most corporates is to reduce the influence of external financial variables on the company’s earnings volatility, in the short term. This article describes the developments in financial risk management, presents the influence factors and underlines the recent trends in this field.

Suggested Citation

  • Laura Vasilescu, 2014. "Financial Risk Management – Influence Factors And New Trends," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 2(42), pages 69-75.
    • Handle: RePEc:aio:aucsse:v:2:y:2014:i:42:p:69-75
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    File URL: http://feaa.ucv.ro/AUCSSE/0042v2-010.pdf
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    References listed on IDEAS

    as
    1. Froot, Kenneth A & Scharfstein, David S & Stein, Jeremy C, 1993. "Risk Management: Coordinating Corporate Investment and Financing Policies," Journal of Finance, American Finance Association, vol. 48(5), pages 1629-1658, December.
    2. Söhnke M. Bartram, 2000. "Corporate Risk Management as a Lever for Shareholder Value Creation," Financial Markets, Institutions & Instruments, John Wiley & Sons, vol. 9(5), pages 279-324, December.
    3. Fatemi, Ali & Luft, Carl, 2002. "Corporate risk management: Costs and benefits," Global Finance Journal, Elsevier, vol. 13(1), pages 29-38.
    4. René M. Stulz, 1996. "Rethinking Risk Management," Journal of Applied Corporate Finance, Morgan Stanley, vol. 9(3), pages 8-25, September.
    5. Danijela Miloš & Metka Tekavčič & Željko Šević, 2007. "A review of the rationales for corporate risk management: fashion or the need?," EFZG Working Papers Series 0714, Faculty of Economics and Business, University of Zagreb.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    corporate risk; management; crisis; factors; trends;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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