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Risk Management

, Volume 21, Issue 1, pp 19–47 | Cite as

Corporate risk management practices and firm value in an emerging market: a mixed methods approach

  • Gamze Ozturk DanismanEmail author
  • Pelin Demirel
Original Article
  • 118 Downloads

Abstract

This paper examines the impact of corporate risk management strategies, namely, (1) financial, (2) operational, and (3) enterprise risk management on firm value in the context of an emerging market, Turkey. We use a unique hand-collected sample of non-financial Turkish companies for the years 2010–2015 and use mixed research methods to gain insights into the complex relationship between risk management and firm value. The quantitative methodology is accompanied by a follow up qualitative study that involves in-depth interviews with selected finance and risk management professionals. Results surprisingly reveal that none of the three risk management strategies increase firm value. We explore how the different institutional circumstances surrounding firms moderate the relationship between risk management and firm value and derive some policy implications for authorities in emerging markets regarding improving disclosures on risk management and corporate governance.

Keywords

Corporate risk management Financial hedging Operational hedging Enterprise risk management Firm value 

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Copyright information

© Macmillan Publishers Ltd., part of Springer Nature 2018

Authors and Affiliations

  1. 1.Department of ManagementBogazici UniversityIstanbulTurkey
  2. 2.Dyson School of Design Engineering, Imperial CollegeLondonUK

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