Browsing by Author "Glombitza, Tim Felix"
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- Does risk management have an influence on market value in non-financial industries? : evidence from the chemical industryPublication . Glombitza, Tim Felix; Bonfim, Diana Carina Ribeiro GuimarãesThis thesis focuses on the structure of risk management in the chemical industry to evaluate the relationship between risk management and market value performance. The objective is to draw an integral picture of the companies’ risk management procedures. Furthermore, the most popular tools and general trends for risk management in the chemical industry are examined. The analysis is based on two pillars, quantitative (ratios) and qualitative (risk score) data obtained from company annual reporting. Therefore, handpicked balance sheet data from 82 of the largest chemical producers worldwide over 10 years has been collected, processed and evaluated. The data suggests an increased attention regarding risk management in the chemical sector, since companies worldwide increased their efforts significantly during the research period. Furthermore, almost all companies monitor and hedge their risk exposure in one way or another. However, it is not possible to infer that risk management contributes significantly to the market value development of chemical companies in the researched sample. The quantitative data analysed, shows significant results and indicates an interest of investors regarding risk or in other words risk aversion. For the risk score, which measures institutional risk management efforts of companies, no statistical significance – hence contribution to company’s performance – can be observed. In conclusion, risk management plays an increasingly important role for company’s strategic decision-making, while investors seem to care only about the outcome of the risk profile of companies and not how they are accomplished.