scholarly journals AN EMPIRICAL INVESTIGATION OF FINANCIAL RISK MANAGEMENT ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS

2020 ◽  
Vol 5 (8) ◽  
pp. 10-20
Author(s):  
Jowhar Massoudie
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Commercial Banks ◽  
Financial Risk ◽  
Empirical Investigation ◽  
Financial Risk Management

scholarly journals Impact of Financial Risk Management Practices on Financial Performance: Evidence from Commercial Banks in Botswana

2019 ◽  
Vol 6 (1) ◽  
pp. 25
Author(s):  
Sathyamoorthi C. R. ◽  
Mogotsinyana Mapharing ◽  
Mphoeng Mphoeng ◽  
Mashoko Dzimiri
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Interest Rates ◽  
Commercial Banks ◽  
Financial Risk ◽  
Management Practices ◽  
Return On Assets ◽  
Financial Risk Management ◽  
Return On Equity ◽  
Total Debt

The study examined the impact of financial risk management practices on the financial performance of commercial banks in Botswana. The study used Return on Asset and Return on Equity to measure financial performance. Inflation, Interest rates, total debt to total assets, total debt to total equity, total equity to total assets and loan deposit ratios were used as proxies for financial risk management. The research population was all the 10 commercial banks in Botswana and the study covered a period of 8 years from 2011 to 2018. This descriptive study sourced monthly secondary data from Bank of Botswana Financial Statistics database. Descriptive statistics, correlation and regression analyses were applied to analyze the data. The results from regression analysis showed that interest rates had a negative and significant impact on return on assets and on return on equity. On the other hand, total debt to total assets showed a negative and insignificant effect on return on assets. However, total debt to total assets, revealed a positive and insignificant effect on return on equity. The loan deposit ratio indicated a negative and significant impact on return on assets and on return on equity. Findings suggest that banks should strike a proper balance between financial risk management practices and financial performance by engaging in appropriate market, credit, and liquidity risk management practices that will ensure safety for their banks and yield positive profits.

The relationship between financial risk management and succession planning in family businesses

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
George Mihaylov ◽  
Ralf Zurbruegg
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Succession Planning ◽  
Financial Risk ◽  
Management Practices ◽  
Critical Role ◽  
Family Businesses ◽  
Financial Risk Management ◽  
Content Type ◽  
The Relationship

PurposeThis article examines the relationship between financial risk management and succession planning in family businesses. Motivated by the Theory of Planned Behaviour, we hypothesize that the use of professional risk management practices is associated with an increased likelihood that businesses adopt professionalized approaches to succession planning. We then investigate if succession planning professionalization is, in turn, positively related to the financial performance of family businesses.Design/methodology/approachWe apply binary probit and ordered dependent variable regressions to unique data generated from a survey sample of Australian family businesses. To check the robustness of our results to potential endogeneity concerns we apply difference tests to propensity score matched sub-samples from our original cohort of respondents.FindingsThe results show that, in contrast to verbal or absent succession arrangements, formal written succession plans are both positively associated with the use of financial risk management practices and with superior financial performance in family businesses.Originality/valueOur arguments and findings suggest that active financial risk management provides a platform for planning succession in family businesses, and that this links with improved short-term financial performance. In light of the critical role that succession plays in ensuring long-term business sustainability, our findings provide important and novel insights into the conditions under which family businesses are most likely to use formal professionalized succession planning.

scholarly journals Financial Risk Management and Sustainability

2021 ◽  
Vol 13 (15) ◽  
pp. 8300
Author(s):  
María Antonia García-Benau ◽  
Nicolás Gambetta ◽  
Laura Sierra-García
Keyword(s):  
Risk Management ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Financial Risk ◽  
Developed Countries ◽  
Additional Research ◽  
Financial Risk Management ◽  
Corporate Social

In the last decades, the studies that analyze the links between corporate social responsibility and financial performance in developed countries show mixed and inconclusive results, so additional research is required [...]

scholarly journals Financial risk management in the V4 Countries’ SMEs segment

2020 ◽  
Vol 17 (4) ◽  
pp. 228-240
Author(s):  
Anna Kotaskova ◽  
Kornelia Lazanyi ◽  
John Amoah ◽  
Jaroslav Belás
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Empirical Investigation ◽  
The Other ◽  
Z Score ◽  
Online Questionnaire ◽  
Financial Risk Management ◽  
Self Confidence ◽  
Management Knowledge ◽  
Chi Squared

The paper examines entrepreneurs’ attitudes towards chosen problems of managing financial risk in the V4 countries’ small and medium-sized enterprises. Financial risk has a significant effect on SMEs’ operations and their sustainability in the market. Entrepreneurs’ attitudes were quantified in terms of the defined aim, and a comparison of the differences in the intensity of these perceptions was made. An empirical investigation was accomplished in the V4 countries via an online questionnaire in 2020 (before the onset of the corona-crisis). A total of 1,585 valid questionnaires were obtained. The results were compared using Chi-squared and Z-score. Entrepreneurs in all V4 countries perceive financial risk correctly as an everyday part of their business activities. Their perceptions are very similar in all V4 countries. SMEs in the V4 countries evaluated the financial performance of their companies quite positively. Entrepreneurs in this research have a relatively high opinion of their financial risk management knowledge, which they presented accordingly. The research also revealed that Hungarian entrepreneurs, instead of those from the other three V4 countries, have a higher opinion of their financial risk capabilities. They highly evaluated their financial risk management knowledge and showed a higher self-confidence in managing financial risk.

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