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Indexed by:期刊论文

Date of Publication:2016-01-01

Journal:APPLIED ECONOMICS

Included Journals:SSCI、Scopus

Volume:48

Issue:8

Page Number:658-668

ISSN No.:0003-6846

Key Words:Initiative risk management; firm value; financial enterprises; corporate finance

Abstract:This study considers 189 Chinese financial listed companies between 2009 and 2013 as research samples to establish indicators for evaluating the initiative risk management behaviour of financial enterprises. This work further examines the relationship between initiative risk management and firm value. Results show that financial enterprises could effectively increase firm value by taking initiative risk management measures, such as setting up departments or positions that specialize in risk management, using financial derivative instruments or engaging popular international accounting firms as audit institutions. Moreover, results reveal that the permeability of initiative risk management has an unstable effect on firm value, that is, a nonlinear relationship exists between the permeability of initiative risk management and firm value.