The Effect of Risk Management and Intellectual Capital on Companies Performance
Subject Areas : Financial Knowledge of Securities Analysis
Keywords: Total Risk Management, Intellectual Capital, innovation, Firm-specific investment, Performance and functional beh,
Abstract :
Risk management has traditionally been occupied in eliminated downside exposures and effects of behavioral over the Performance and function. This paper puts forward the idea of total risk management as the ability to respond to market factors beyond management control so as to stabilize corporate earnings. This in turn will lead to enhanced trust by investors and stakeholders and result in enhanced performance that indicative of performance behaviors. The paper reports on an empirical study that examines the performance relationship of total risk management and finds a positive relationship, among drug companies and the automotive industry which once in each industry and once total industries especially among firms investing in innovation and those operating in knowledge-intensive industries that indicative of Performance and functional behaviors.