Risk management practices and company performance: An empirical evidence from cement sector of Pakistan
The study investigates the impact of risk management on the company performance.Degree of financial leverage (DFL), degree of operating leverage (DOL) and the working capital ratio (WCR) are taken as independent variables which are the representative of risk and the earning price per share (EPS), re...
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Virtus interpress
2016
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author | Ali, Syed Atif Hussin, Mohd Rasid |
author_facet | Ali, Syed Atif Hussin, Mohd Rasid |
author_sort | Ali, Syed Atif |
collection | UUM |
description | The study investigates the impact of risk management on the company performance.Degree of financial leverage (DFL), degree of operating leverage (DOL) and the working capital ratio (WCR) are taken as independent variables which are the representative of risk and the earning price per share (EPS), return on assets (ROA), return on equity (ROE), Sales and Net profits are taken as the representative of performance.Last 10 years (2004-2013) of Cement sector of Pakistan data is chosen as sample for analyze their relations by multiple regression technique.Results reveal that WCR impact adequately on the company performance because if company has enough liquidity than it perform its operations smoothly and enhance its performance very well.DFL should be control moderately because enough DFL leads performance of company downward. On the other hand, the DOL should be less because it causes the less profitability for the company from its operations. |
first_indexed | 2024-07-04T06:07:40Z |
format | Article |
id | uum-18371 |
institution | Universiti Utara Malaysia |
last_indexed | 2024-07-04T06:07:40Z |
publishDate | 2016 |
publisher | Virtus interpress |
record_format | dspace |
spelling | uum-183712016-06-28T07:30:42Z https://repo.uum.edu.my/id/eprint/18371/ Risk management practices and company performance: An empirical evidence from cement sector of Pakistan Ali, Syed Atif Hussin, Mohd Rasid HD28 Management. Industrial Management The study investigates the impact of risk management on the company performance.Degree of financial leverage (DFL), degree of operating leverage (DOL) and the working capital ratio (WCR) are taken as independent variables which are the representative of risk and the earning price per share (EPS), return on assets (ROA), return on equity (ROE), Sales and Net profits are taken as the representative of performance.Last 10 years (2004-2013) of Cement sector of Pakistan data is chosen as sample for analyze their relations by multiple regression technique.Results reveal that WCR impact adequately on the company performance because if company has enough liquidity than it perform its operations smoothly and enhance its performance very well.DFL should be control moderately because enough DFL leads performance of company downward. On the other hand, the DOL should be less because it causes the less profitability for the company from its operations. Virtus interpress 2016 Article PeerReviewed Ali, Syed Atif and Hussin, Mohd Rasid (2016) Risk management practices and company performance: An empirical evidence from cement sector of Pakistan. Corporate Ownership and Control, 13 (2). ISSN 1727-9232 http://www.virtusinterpress.org/RISK-MANAGEMENT-PRACTICES-AND.html |
spellingShingle | HD28 Management. Industrial Management Ali, Syed Atif Hussin, Mohd Rasid Risk management practices and company performance: An empirical evidence from cement sector of Pakistan |
title | Risk management practices and company performance: An empirical evidence from cement sector of Pakistan |
title_full | Risk management practices and company performance: An empirical evidence from cement sector of Pakistan |
title_fullStr | Risk management practices and company performance: An empirical evidence from cement sector of Pakistan |
title_full_unstemmed | Risk management practices and company performance: An empirical evidence from cement sector of Pakistan |
title_short | Risk management practices and company performance: An empirical evidence from cement sector of Pakistan |
title_sort | risk management practices and company performance an empirical evidence from cement sector of pakistan |
topic | HD28 Management. Industrial Management |
work_keys_str_mv | AT alisyedatif riskmanagementpracticesandcompanyperformanceanempiricalevidencefromcementsectorofpakistan AT hussinmohdrasid riskmanagementpracticesandcompanyperformanceanempiricalevidencefromcementsectorofpakistan |