The determinants of corporate risk management

 

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dc.contributor.advisor Hobson, Jane en_ZA
dc.contributor.author Dunley-Owen, Tracy en_ZA
dc.date.accessioned 2015-09-14T18:11:53Z
dc.date.available 2015-09-14T18:11:53Z
dc.date.issued 1997 en_ZA
dc.identifier.citation Dunley-Owen, T. 1997. The determinants of corporate risk management. University of Cape Town. en_ZA
dc.identifier.uri http://hdl.handle.net/11427/13914
dc.description Bibliography: leaves 123-128. en_ZA
dc.description.abstract Traditional financial theory which is based on the Modigliani-Miller indifference paradigm, suggests that a firm's financial policies, of which risk management is one component, are irrelevant. However, this conclusion is seemingly contradicted by the observation of widespread use of derivatives by companies, particularly for hedging purposes. This apparent conflict is receiving attention from international financial researchers. A number of hypothesis have been proposed to explain corporate risk management. To evaluate the strength of these theories, this paper begins with a formalised process of identifying the assumptions underlying the hypotheses. The theories are classified according to which assumptions are relaxed. A limited number of international empirical studies have been performed to date. The results have been varied; four of the important studies are discussed. For the first time, an empirical investigation into the determinants of corporate risk management in South Africa is conducted. The most significant findings are that larger firms are more inclined to undertake risk management, and the likelihood of a firm hedging increases with the size of the director's ownership in the company. en_ZA
dc.language.iso eng en_ZA
dc.subject.other Finance en_ZA
dc.title The determinants of corporate risk management en_ZA
dc.type Master Thesis
uct.type.publication Research en_ZA
uct.type.resource Thesis en_ZA
dc.publisher.institution University of Cape Town
dc.publisher.faculty Faculty of Commerce en_ZA
dc.publisher.department Department of Finance and Tax en_ZA
dc.type.qualificationlevel Masters
dc.type.qualificationname MBusSc en_ZA
uct.type.filetype Text
uct.type.filetype Image
dc.identifier.apacitation Dunley-Owen, T. (1997). <i>The determinants of corporate risk management</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,Department of Finance and Tax. Retrieved from http://hdl.handle.net/11427/13914 en_ZA
dc.identifier.chicagocitation Dunley-Owen, Tracy. <i>"The determinants of corporate risk management."</i> Thesis., University of Cape Town ,Faculty of Commerce ,Department of Finance and Tax, 1997. http://hdl.handle.net/11427/13914 en_ZA
dc.identifier.vancouvercitation Dunley-Owen T. The determinants of corporate risk management. [Thesis]. University of Cape Town ,Faculty of Commerce ,Department of Finance and Tax, 1997 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/13914 en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Dunley-Owen, Tracy AB - Traditional financial theory which is based on the Modigliani-Miller indifference paradigm, suggests that a firm's financial policies, of which risk management is one component, are irrelevant. However, this conclusion is seemingly contradicted by the observation of widespread use of derivatives by companies, particularly for hedging purposes. This apparent conflict is receiving attention from international financial researchers. A number of hypothesis have been proposed to explain corporate risk management. To evaluate the strength of these theories, this paper begins with a formalised process of identifying the assumptions underlying the hypotheses. The theories are classified according to which assumptions are relaxed. A limited number of international empirical studies have been performed to date. The results have been varied; four of the important studies are discussed. For the first time, an empirical investigation into the determinants of corporate risk management in South Africa is conducted. The most significant findings are that larger firms are more inclined to undertake risk management, and the likelihood of a firm hedging increases with the size of the director's ownership in the company. DA - 1997 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 1997 T1 - The determinants of corporate risk management TI - The determinants of corporate risk management UR - http://hdl.handle.net/11427/13914 ER - en_ZA


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