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Rationales for corporate risk management from stakeholders’ perspective

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  • Klimczak, Karol Marek

Abstract

The rationales for corporate risk management are examined from the point of view of the theory of finance and of key stakeholder groups’ interests. A study of the use of hedging instruments in 161 Polish non-financial listed companies is then presented. The study is based on keyword analysis of financial statements; parametric tests and logit regression are used to determine relationships between the hedging decision and financial standing of companies. However, company size is proved to be the only significant factor for a hedging decision. The implications of these findings and new research questions are discussed in the conclusion.

Suggested Citation

  • Klimczak, Karol Marek, 2005. "Rationales for corporate risk management from stakeholders’ perspective," MPRA Paper 4242, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:4242
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    File URL: https://mpra.ub.uni-muenchen.de/4242/1/MPRA_paper_4242.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. John Kwaku Mensah Mawutor & Kezia Bortey & Bernardine Ansah & Faustina Osei- Frimpong & Worlanyo Kumassah, 2015. "Credit Risk Management and Profitability of Banks Listed on the Ghana Stock Exchange," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 4(7), pages 396-406.
    2. Thomas Kiptanui Tarus & Joel K Tenai & Joyce Komen, 2020. "Does Ownership Structure Affect Risk Management? Evidence from an Emerging Economy, Kenya," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 8(1), pages 1-10.

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    More about this item

    Keywords

    stakeholder theory; risk management; hedging; derivatives;
    All these keywords.

    JEL classification:

    • 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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