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What is the relationship between financial risk and value added?

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Question ajoutée par Nadjib RABAHI , Freelancer , My own account
Date de publication: 2016/12/25
MOHAMMED ELATTAR
par MOHAMMED ELATTAR , مدير مالي , TAZWEED FOR AGRICULTURE CROPS

This research carried out about 138 companies listed on the Tehran Stock Exchange including 11 industries during 2001-2009. After calculation of research variables via multiple regression method, analyzing of research result has been carried out using six hypothesizes. Final result of this research indicates that there is a significant relationship between operational risk and economic value added based on market and book values. However, no meaningful relationship is available between financial risk and economic value added based on market and book values. In addition, the result of multiple regression method indicates no meaningful relationship between economic value added based on market and book values, type of industries and expected profit growth with variable efficiency. It also shows a negative relationship between economic value added based on market and book values and expected financial distress index and positive relationship between economic value added based on market and book values and size of company.

that fir example

Ashraf E. Mahmoud (PhD)
par Ashraf E. Mahmoud (PhD) , University Lecturer, Freelancer Consultant and Trainer for Int'l Business & Banking TF. , FreeLancer

Thanks for invitation,

The relationship is  "suit adversely" or "counterproductive", since:

The increase in value added = Increase of the organization 's productivity which lead to minimizing the financial risk or maximizing the Return of Equity (R.O.E).

Abdullah Aziz Eldain Morsi  Elgendy -        CMA  Candidate
par Abdullah Aziz Eldain Morsi Elgendy - CMA Candidate , Regional Receivable Accountant , Amiantit Group of Companies

fully accepted with Mr. Suliman  answer

Soliman Abd  ALmalak Gendy
par Soliman Abd ALmalak Gendy , مدير ادارة مراقبة حسابات , الجهاز المركزى للمحاسبات

Financial risk is the possibility that shareholders will lose when they invest in a company that has debt. It is defined as :for a given portfolio ,time horizon. and probability p *Value risk is a statustical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over a specific time frame. *It is also a measure of investments *It estimates how much a set of investment might lose, given normal mareturn conditions in a set time period

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