The determinants of corporate risk management

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dc.contributor.advisorHobson, Janeen_ZA
dc.contributor.authorDunley-Owen, Tracyen_ZA
dc.date.accessioned2015-09-14T18:11:53Z
dc.date.available2015-09-14T18:11:53Z
dc.date.issued1997en_ZA
dc.descriptionBibliography: leaves 123-128.en_ZA
dc.description.abstractTraditional 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.identifier.apacitationDunley-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/11427/13914en_ZA
dc.identifier.chicagocitationDunley-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/11427/13914en_ZA
dc.identifier.citationDunley-Owen, T. 1997. The determinants of corporate risk management. University of Cape Town.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
dc.identifier.urihttp://hdl.handle.net/11427/13914
dc.identifier.vancouvercitationDunley-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/11427/13914en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentDepartment of Finance and Taxen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherFinanceen_ZA
dc.titleThe determinants of corporate risk managementen_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMBusScen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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