Theoretical arguments suggest that stakeholder issues are of serious concern for management when making corporate financial decisions (similar Parsons and Titman, 2007: 50). Hitherto, extant literature has provided only rare direct empirical evidence for these stakeholder issues. Due to the early contributions by Titman (1984), the most advanced research stream is on the firm’s capital structure choice, which partially includes stakeholder arguments. As shown in section 4.3, the firm’s capital structure decision is only one component in a stakeholder rationale for risk management that takes other corporate financial decisions, such as liquidity and dividend policy, into account. The theoretical arguments as well as the empirical results presented in section 4.3 and chapter 5 are supportive of the concept of a stakeholder reasoning for risk management. However, until now, empirical research on the SRRM has been rare. Lim and Wang (2007), for instance, assert that the stakeholder-oriented stream of risk management literature is, in general, still relatively underdeveloped (Lim and Wang, 2007: 644).


Total Asset Earning Management Capital Structure Accounting Standard Intangible Asset 
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© Betriebswirtschaftlicher Verlag Dr. Th. Gabler | GWV Fachverlage GmbH, Wiesbaden 2008

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