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Determinants of Effective Financial Risk Management in Small Business: A Theoretical Framework

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  • Nurulhasanah Abdul Rahman
  • Rafisah Mat Radzi

Abstract

This paper aims to develop a theoretical model of potential determinants of effective financial risk management in small business. In achieving this objective, the methodology used includes library search and analyzing previous literature review on the subject of financial risk management and small business especially in Malaysia case study. The significant variables are namely the leadership, training programs, use of technology, entrepreneurship orientation (EO) and accounting information. This paper also hopes to strengthen the body of knowledge on how financial risk management helps small business towards success, besides to act as a reference for empirical research.

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  • Nurulhasanah Abdul Rahman & Rafisah Mat Radzi, 2015. "Determinants of Effective Financial Risk Management in Small Business: A Theoretical Framework," Information Management and Business Review, AMH International, vol. 7(2), pages 87-92.
    • Handle: RePEc:rnd:arimbr:v:7:y:2015:i:2:p:87-92
    DOI: 10.22610/imbr.v7i2.1143
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    References listed on IDEAS

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    1. Andersen, Torben G. & Bollerslev, Tim & Christoffersen, Peter F. & Diebold, Francis X., 2013. "Financial Risk Measurement for Financial Risk Management," Handbook of the Economics of Finance, in: G.M. Constantinides & M. Harris & R. M. Stulz (ed.), Handbook of the Economics of Finance, volume 2, chapter 0, pages 1127-1220, Elsevier.
    2. Georges Dionne & Thouraya Triki, 2013. "On risk management determinants: what really matters?," The European Journal of Finance, Taylor & Francis Journals, vol. 19(2), pages 145-164, February.
    3. Yousef Shahwan, 2008. "Qualitative characteristics of financial reporting: a historical perspective," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 9(3), pages 192-202, November.
    4. Aebi, Vincent & Sabato, Gabriele & Schmid, Markus, 2012. "Risk management, corporate governance, and bank performance in the financial crisis," Journal of Banking & Finance, Elsevier, vol. 36(12), pages 3213-3226.
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