search query: @author Miller, K.D. / total: 5
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| Author: | Miller, K.D. Chen, W-R. |
| Title: | Risk and firms' costs |
| Journal: | Strategic organization
2003 : NOV, VOL. 1:4, p. 355-382 |
| Index terms: | Bankruptcy Costs Risk management |
| Language: | eng |
| Abstract: | The economic rationale for limiting company's risk is examined in this study. The authors argue that risk increases the cost of doing business for two reasons. 1) Risk causes operating inefficiencies and imposes adjustment costs and 2) diverse stakeholders must be compensated for their risk-bearing. Empirical support is found for positive risk-cost relations using various model specifications and risk measures, and across different manufacturing industries and time periods. |
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