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Due Diligence Associated with Risk Management and Linked to Management Control

Author

Listed:
  • Oliveira Cidália

    (REMIT – Research on Economics Management and Information Technologies Universidade Portucalense, Portugal CIDI – IEES – Instituto Europeu de Estudos Superiores, Portugal)

  • Barata Vanessa

    (IEES, Instituto Europeu de Estudos Superiores, Portugal)

  • Rodrigues Margarida

    (Member of CEFAGE – University of Beira Interior, Portugal CIDI – IEES – Instituto Europeu de Estudos Superiores, Portugal)

Abstract

Objective Due Diligence is considered an internal practice that analyzes and identifies the actual situation of an organization. Having a strategic relevance and impact on Mergers and Acquisitions, it provides a solid foundation for the final decision or negotiation. Given this relevance, it is considered an input for Management tools to have information precisely collected and oriented. Methodology The aim of this article is to confirm, through empirical research, namely a case study, conducted in Portuguese enterprises, the importance of Due Diligence and its role in Risk Management, assessing its usefulness as a management control tool and its potential impact on the performance of Portuguese SMEs. Findings Managers recognize that there is a lack of empirical research in this area, especially in terms of its impact on SMEs. Value added Few studies relate to the practices of Due Diligence associated with Risk Management and linked to Management control in SMEs in order to increase transparency and performance. Recommendations This study confirms the contribution Due Diligence can have to Risk Management and the consequent impact on performance when used linked to a Management control tool.

Suggested Citation

  • Oliveira Cidália & Barata Vanessa & Rodrigues Margarida, 2024. "Due Diligence Associated with Risk Management and Linked to Management Control," Journal of Intercultural Management, Sciendo, vol. 16(1), pages 49-75, March.
    • Handle: RePEc:vrs:joinma:v:16:y:2024:i:1:p:49-75:n:2
    DOI: 10.2478/joim-2024-0002
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    References listed on IDEAS

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    1. Sebastian Reich, 2018. "Technical Due Diligence," Management for Professionals, in: Tobias Just & Hermann Stapenhorst (ed.), Real Estate Due Diligence, pages 147-206, Springer.
    2. Ana Lúcia Bertoli & Maisa de Souza Ribeiro, 2006. "Passivo ambiental: estudo de caso da Petróleo Brasileiro S.A - Petrobrás. A repercussão ambiental nas demonstrações contábeis, em conseqüência dos acidentes ocorridos," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 10(2), pages 117-136.
    3. Margi Levy & Philip Powell & Les Worrall, 2005. "Strategic Intent and E-Business in SMEs: Enablers and Inhibitors," Information Resources Management Journal (IRMJ), IGI Global, vol. 18(4), pages 1-20, October.
    4. Ferreira de Araújo Lima, Priscila & Crema, Maria & Verbano, Chiara, 2020. "Risk management in SMEs: A systematic literature review and future directions," European Management Journal, Elsevier, vol. 38(1), pages 78-94.
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