Browsing Working Papers (SMG) by Author "Andersen, Torben Juul"
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An Industry PerspectiveAndersen, Torben Juul (København, 2005)[More information][Less information]
Abstract: Multinational enterprise in control of dispersed overseas resources and capabilities has been linked to strategic flexibility that allows the firm to take advantage of opportunities and manage exposures imposed by changing environmental conditions. This paper analyzes the implied performance and risk management effects in a comprehensive sample of public firms and finds supportive evidence for the proposition that multinationality can enhance performance across industries. However, the ability to exploit upside potential and avoid downside risk is industry specific. The positive effects of multinationality are found particularly pronounced among firms operating in knowledge intensive service industries while firms in capital-intensive primary industries display the inverse relationships. Keywords: Strategic flexibility, Real options, Risk management URI: http://hdl.handle.net/10398/7473 Files in this item: 1
cbs forskningsindberetning smg 30.pdf (479.6Kb) -
Andersen, Torben Juul; Oliviero, Roggi (Frederiksberg, 2012)[More information][Less information]
Abstract: Corporate failures, periodic recessions, regional debt crises and volatile financial markets have intensified the focus on risk management as the means to deal with turbulent conditions. The ability to respond effectively to abrupt environmental impacts is considered an important source of competitive advantage. Yet, surprisingly little research has analyzed whether the presumed advantages of effective risk management are associated with superior outcomes. Here we present a comprehensive study of risk management effectiveness and the relationship to corporate performance based on more than 33,500 observations in 3,400 firms over the turbulent 20-year period 1991-2010. Determining effective risk management as the ability to reduce earnings and cash flow volatility, we find that both have significant positive relationships to lagged performance measures after controlling for industry effects, company size and financial leverage. URI: http://hdl.handle.net/10398/8697 Files in this item: 1
Torben Andersen Roggi.pdf (135.5Kb) -
Andersen, Torben Juul; Roggi, Oliviero (Frederiksberg, 2012)[More information][Less information]
Abstract: Major corporate failures, periodic recessions, regional debt crises and volatile markets have intensified the focus on corporate risk management as the means to deal better with turbulent business conditions. Hence, the ability to respond effectively to the often dramatic environmental changes is considered an important source of competitive advantage. However, surprisingly little research has analyzed if the presumed advantages of effective risk management lead to superior performance or assessed important antecedents of effective risk management capabilities. Here we present a comprehensive study of risk management effectiveness and the relationship to corporate performance based on panel data for more than 3,400 firms accounting for over 33,500 annual observations during the turbulent period 1991- 2010. Determining effective risk management as the ability to reduce earnings and cash flow volatility, we find that it has significant positive relationships to lagged performance measures after controlling for industry effects and company size. We also find that availability of slack resources and investment commitments affect the risk management capabilities and their relationship to performance. URI: http://hdl.handle.net/10398/8696 Files in this item: 1
Torben Andersen.pdf (170.6Kb)
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