Risk, the Limits of Financial Risk Management, and Corporate Resilience
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Implication
Examines the limitations of financial risk management on firm value, emphasizing the need for resilience in nonfinancial firms.
Key Points
- The aim is to explore how financial risk management influences total risk and firm value, highlighting its limitations.
- Evidence review of theories linking firm value and total risk.
- Examination of financial risk management practices in nonfinancial firms.
- Financial risk management primarily addresses near-term risks in nonfinancial firms.
- Limited role of financial risk management affects shareholder wealth creation.
- Emphasizes the need for greater focus on corporate resilience.
Cite This Study
René M. Stulz (2025) studied this question.