Risk patterns, structural characteristics, and organizational configurations

Renzi, Antonio; Sancetta, Giuseppe; Orlando, Beatrice

doi:10.1002/jsc.2138

Cited by 3 publications

(2 citation statements)

References 91 publications

(121 reference statements)

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“…Chung (1989) argues that every business experience intrinsic business risk due to the cyclicality of its industry. The intensity with which intrinsic business risk acts on the volatility of operating results depends on the structural profile of the firm in terms of fixed costs and thus operating leverage (Renzi et al, 2017). Further considerations regarding this area of risk for football clubs should also concern the role of slack resources and their interaction with investment projects and innovation (Esposito De Falco & Renzi, 2015).…”

Section: Systematic Reviewmentioning

confidence: 99%

The football industry. A literature review and future research avenues in the risk management perspective

Renzi,

Taragoni

2024

CORPORATE GOVERNANCE AND RESEARCH &Amp; DEVELOPMENT STUDIES

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The transformation of the professional football industry into a multi-billion-dollar industry has attracted increasing attention from regulators, investors and academics in recent years. Such interest has also been reflected in the exponential growth of economic-managerial scientific production on the subject. However, there is still no comprehensive overview of the literature. The objective of this paper is to achieve a systematisation of the scientific research conducted in the period between 1977 and 2023, identifying the current state of production, emerging research areas, and future research trajectories in the risk management perspective of football clubs. To this end, a bibliometric and systematic review were developed on 1.081 and 18 papers published during this period, respectively. Statistical processes useful for developing the analysis were conducted using Bibliometrix on data retrieved from the Scopus database. The results revealed the need to further investigate the declination of endogenous and exogenous determinants of risk drivers and their relationship with volatility of sports performance for professional football clubs.

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Section: Systematic Reviewmentioning

confidence: 99%

The football industry. A literature review and future research avenues in the risk management perspective

Renzi,

Taragoni

2024

CORPORATE GOVERNANCE AND RESEARCH &Amp; DEVELOPMENT STUDIES

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“…The potential degree of operating leverage arises as an internal driver of the EBIT volatility. The standard deviation of EBIT depends from the combination between the volatility in revenues and the operating cost structure (Renzi, Sancetta, & Orlando, 2017). Given a firm's revenues (REV) and net operating income (EBIT), we derive the effective degree of operating leverage (DOL) from the following expression.…”

Section: Enterprise Risk Management Corporate Governance and Income Smoothingmentioning

confidence: 99%

Corporate Governance, Enterprise Risk Management, and Inter-temporal Risk Transfer

Renzi¹,

Vagnani²

2020

JMAA

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This work is an initial attempt to describe the interconnections among corporate governance, enterprise risk management, and the phenomena of inter-firm risk transfer that occurs in combination with firms' income smoothing. Corporate governance is conceived as a set of rules according to which a firm is managed and governed by its top managers. Extant literature on corporate governance has pointed out the benefits of the adoption, at a firm level, of a comprehensive enterprise risk management process. We note that, although such an adoption favors the smoothing of a firm's income, in smoothing the income a firm, it also gives rise to an inter-temporal transfer of risk from the firm itself to its stakeholders, specifically to suppliers and employees. Such transfer of risk depends on the strength of a firm contractual power and on the structural relationships established by a firm with its stakeholders.We therefore argue that larger-sized organizations affiliated with a business group are likely to smooth income to a greater extent than smaller-sized organizations unaffiliated with a business group. The paper also offers some discussions of the findings and points out some important issues to be addressed in future studies.

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Risk-return analysis of M&A investments. A theoretical equity cost framework for the valuation process of private companies’ acquisitions

Orlando¹,

Renzi²,

Vagnani³

2019

Corporate Governance: Search for the Advanced Practices

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M&A deals often have private companies as the target. One of the main concerns of this investment type is how to evaluate the target when the target is a private firm. In fact, traditional Capital Budgeting metrics are at least even inconsistent when it comes to define the target value of a private company because such measures are mostly made for public companies. As the negative outcome of this practice, the quality of the evaluation might be poor because of the imprecise discount factor used for the overtime estimate of the target's free cash flows. Building on such cues, the paper proposes a theoretical framework aimed to reinterpret the risk-return analysis of equity by re-calibrating the evaluation process on the firm's fundamental. We argue the equity cost of the private firm can be measured as the combination of the following three factors: i) intrinsic business risk tied to competitive environment volatility; ii) structural characteristics of the firm; iii) capital market dynamics. Adopting a bottom up logic, the exposition to the capital market's volatility of a private firm depends both on the combination between its structural characteristics and on the systematic risk averagely absorbed by the industry in which the company operates. Our conceptual contribution accomplishes two major goals. First, it links the equity cost of the private firm to contingency. Second its application, highlighting linkages between structural variables of the target company and its risk-return dynamics, may improve M&A decisions in terms of a better trade-off between strategic growth and risk mitigation

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Risk patterns, structural characteristics, and organizational configurations

Cited by 3 publications

References 91 publications

The football industry. A literature review and future research avenues in the risk management perspective

The football industry. A literature review and future research avenues in the risk management perspective

Corporate Governance, Enterprise Risk Management, and Inter-temporal Risk Transfer

Risk-return analysis of M&A investments. A theoretical equity cost framework for the valuation process of private companies’ acquisitions

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