A Stakeholder Rationale for Risk Management: Implications for Corporate Finance Decisions
Gregor Gossy, "A Stakeholder Rationale for Risk Management: Implications for Corporate Finance Decisions"
Publisher: Gabler | 2008 | ISBN 3834909858 | PDF | 210 pages | 1.65 MB
Publisher: Gabler | 2008 | ISBN 3834909858 | PDF | 210 pages | 1.65 MB
Ordinarily, only the interests of shareholders, debtholders, and corporate management are taken into account when analyzing corporate financial decisions while the interests of non-financial stakeholders are often neglected. Gregor Gossy develops a so-called stakeholder rationale for risk management arguing that firms which are more dependent on implicit claims from their non-financial stakeholders, such as customers, suppliers, and employees, prefer conservative financial policies. In order to perform panel data analyses of the determinants of corporate financial decisions, the author uses data from Austrian and German industrial companies.