التفاصيل البيبلوغرافية
| العنوان: |
Risk and firms' costs. |
| المؤلفون: |
Miller, Kent D.1 kmiller@mgmt.purdue.edu, Wei-Ru Chen, Kent D.2 weiru.chen@insead.edu |
| المصدر: |
Strategic Organization. Nov2003, Vol. 1 Issue 4, p355-382. 28p. 7 Charts. |
| مصطلحات موضوعية: |
*RISK assessment, *RISK, *INVESTMENT analysis, *BANKRUPTCY, *OVERHEAD costs |
| مستخلص: |
This study examines the economic rationale for limiting firms' risk. We argue that risk increases the cost of doing business for two reasons. First, risk causes operating inefficiencies and imposes adjustment costs. Second, diverse stakeholders must be compensated for their risk-bearing. We find empirical support for positive risk-cost relations using various model specifications and risk measures, and across different manufacturing industries and time periods. We also examine the direct and moderating effects of bankruptcy risk. The relation of distance from bankruptcy to firms' costs depends on whether relations are contemporaneous or lagged and whether bankruptcy is an immediate threat or not. [ABSTRACT FROM AUTHOR] |
|
Copyright of Strategic Organization is the property of Sage Publications Inc. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) |
| قاعدة البيانات: |
Business Source Index |
