Some Remarks On the Impact of Risk Management on Firm Value

O vlivu risk managementu na hodnotu firmy

Jiří Hnilica

Acta Oeconomica Pragensia, 2005, vol. 2005, issue 4, 80-112

Abstract: The paper focuses on how risk management may influence the value of a company. Situation is discussed with models of Modigliani - Miller - Fama and their assumptions in the background. After the basic explications of the afore mentioned models and of the decision-making rule for investments, particular states where risk management may add value are analyzed. An attention is paid mainly to costs of taxation and financial distress, underinvestment and asset substitution.

Keywords: risk management; hedging; firm value (search for similar items in EconPapers)
JEL-codes: G30 (search for similar items in EconPapers)
Date: 2005
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DOI: 10.18267/j.aop.208

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