n African Finance Journal - A note on financial risk management in Australian companies
|Article Title||A note on financial risk management in Australian companies|
|© Publisher:||AfricaGrowth Institute|
|Journal||African Finance Journal|
|Author||B. Rossner and J. Canil|
|Publication Date||Jan 2001|
|Pages||26 - 32|
The evolving literature and evidence on corporate risk management is briefly reviewed. The evidence lags the theory, which focuses on two factors: operating and financial risks driving the probability of financial distress, and managerial incentives. Using Australian company data, this study reports evidence that the extent of overall hedging is positively related to both operating and financial risks, and is also influenced by fund ownership. Managerial incentives appear to be of little importance.
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