The Role of Risk in Corporate Value: A Case Study of the ABB Asbestos Litigation

Kallenberg, Kristian

doi:10.1080/13669870701497795

Cited by 17 publications

(13 citation statements)

References 11 publications

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“…The issue of investor risk perception has important implications for ORM in that risk communication is becoming an increasingly important part of risk management; in fact Kallenberg (2007) concludes that risk communication is a more significant factor in firm value loss rather than the operational loss itself. Our results therefore imply that ORM and OMS need to be communicated on a strategic basis to reduce firm value loss, that is risk communications of OEs in particular BLs and OE need to be managed more effectively to reduce firm value losses.…”

Section: Discussionmentioning

confidence: 99%

“…This can be attributed to a number of reasons. Firstly, most research relating to OMS and firm value has focussed on singular aspects of OMS (see for instance Gillet et al 2010;Kallenberg 2007). Hence the understanding of various aspects of OMS upon firm value has not been analysed, for instance the various aspects of OMS that lead to competitive advantages.…”

Section: Introductionmentioning

confidence: 99%

“…To the best of our knowledge there is no literature on OMS performance, OR and PT (or equivalently relative firm value growth). Although, there exists extensive literature on OR and OMS (see for example Garcia-Dastugue and Lambert 2003;Hong and Lee 2013;Kim et al 2012) the majority of studies do not focus on PT or relative firm value, but on individual firm value and on a particular OMS or OR aspects (see for instance Gillet et al 2010;Kallenberg 2007;Allen and Bali 2007;Dahya et al 1996). For example in Chernobai et al (2011) the operational factors and firm value relationships are examined, however the operational factors analysed are limited to 2 factors only.…”

Section: Introduction To Pairs Trading Operational Risk and Motivatimentioning

confidence: 99%

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Firm Value and the Impact of Operational Management

Karathanasopoulos

2018

Asia-Pac Financ Markets

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Operational management has been gaining increasing importance in the financial industry and firms make substantial investments in operations management systems to reduce operational risk. Using a standard model of operational risk, it can be shown that pair trade profits reveal differences in relative operational performance between firms. Consequently, pair trade profits have implications for understanding operational performance. Moreover, although operations management systems are well established sources of firm value creation, their relation to pair trade profits are not well understood. In this paper we investigate the impact of operations management systems upon firm value in the financial sector. Firstly, we show that relative operational performance between firms can be evaluated from pair trade returns, providing a new method of measuring operational performance, and demonstrate this using 11,648 pair trades data, weekly stock price data and operational event data from 2000 to 2007. Secondly, we find that pair trade returns and operational risks vary significantly by business line and event type, implying that operational systems can improve firm performance by strategically reallocating them. Thirdly, we show that investor risk aversion varies significantly with different operational risks, implying firms should manage operational systems more strategically to reduce firm value losses. Finally, this paper offers an alternative explanation to pair trade returns compared to current research.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introduction To Pairs Trading Operational Risk and Motivatimentioning

confidence: 99%

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Firm Value and the Impact of Operational Management

Karathanasopoulos

2018

Asia-Pac Financ Markets

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“…A importância da gestão da imagem organizacional pode ser entendida ao considerar as consequências da ausência de cuidados com o seu encaminhamento, a falta de controle sobre a reputação ou simplesmente o ''laissez-faire'' pode gerar situações adversas para as organizações. A desídia com a imagem percebida pela sociedade pode provocar danos não somente em sua legitimidade, mas também em suas finanças, como é exposto na pesquisa conduzida por Kallenberg (2007). O autor revelou consequências trágicas para uma indústria de amianto, como a queda de 90 por cento no valor de suas ações em um ano, sendo que 50 por cento desta queda foi relacionada às informações sobre amianto divulgadas pela mídia e a própria indústria.…”

Section: Legitimidade Imagem Organizacional E Discurso No Espaço Midunclassified

Legitimidade Institucional Da Petrobras Em Seu Discurso Socioambiental

Lang

Marinho

Boff

2015

GeS

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A construção da imagem organizacional envolve a autoapresentação dos elementos que a organização deseja projetar para a sociedade. Analisou-se o processo de legitimação da imagem organizacional por meio do discurso socioambiental da PETROBRAS presente no espaço midiático. Para tanto, buscaram-se matérias publicadas nas principais revistas e jornais on-line e comentários postados pelos leitores nas mesmas mídias sociais utilizadas pela empresa. Verificou-se que a empresa apresentou vultosa quantidade de informações pertinentes ao contexto socioambiental em suas mídias institucionais, com destaque ao blog “Fatos e Dados”. Talvez porque essa mídia teve maior destaque e capacidade de integração com os vários atores digitais, ela apresentou grande intensidade de comunicação e mereceu maior atenção dos pesquisadores. Quanto às táticas de legitimação ambiental (O’DONOVAN, 2002), observou-se o uso das três primeiras táticas e a ausência da quarta. Assim, percebeu-se esmero no discurso institucional, mas essa atitude não foi observada nas práticas organizacionais da PETROBRAS.

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“…Some studies also use risk communication as a research object; seeKallenberg (2007). 5 Besides value maximization theory, risk management can also increase firm value through three ways: (1) optimize capital allocation (seeTufano 1996);(2)sharpen the strategic decision ability (seeDoherty and Smetters 2005); and (3) strengthen the incentive of management and enhance the performance level (seeAggarwal and Simkins 2001).…”

mentioning

confidence: 99%

Relationship between initiative risk management and firm value: evidence from Chinese financial listed companies

Wang

et al. 2015

Applied Economics

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This study considers 189 Chinese financial listed companies between 2009 and 2013 as research samples to establish indicators for evaluating the initiative risk management behaviour of financial enterprises. This work further examines the relationship between initiative risk management and firm value. Results show that financial enterprises could effectively increase firm value by taking initiative risk management measures, such as setting up departments or positions that specialize in risk management, using financial derivative instruments or engaging popular international accounting firms as audit institutions. Moreover, results reveal that the permeability of initiative risk management has an unstable effect on firm value, that is, a nonlinear relationship exists between the permeability of initiative risk management and firm value.

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The Role of Risk in Corporate Value: A Case Study of the ABB Asbestos Litigation

Cited by 17 publications

References 11 publications

Firm Value and the Impact of Operational Management

Firm Value and the Impact of Operational Management

Legitimidade Institucional Da Petrobras Em Seu Discurso Socioambiental

Relationship between initiative risk management and firm value: evidence from Chinese financial listed companies

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