财务风险管理是一个增值活动吗[文献翻译].doc

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1、原文：Financialriskmanagement:isitavalue-addingactivity？Financialriskmanagementisaprocesstodealwiththeuncertaintiesresultingfromfinancialmarkers.Itinvolvesassessingthefinancialrisksfacinganorganizationanddevelopingmanagementstrategiesconsistentwithinternalprioritiesandpolicies.Addre

2、ssingfinancialrisksproactivelymayprovideanorganizationwithacompetitiveadvantage.Italsoensuresthatmanagement,operationalstaff,stakeholders,andtheboardofdirectorsareinagreementonkeyissuesofrisk.Consideringwhetherfinancialriskmanagementisvalue-adding.Althoughriskmanagementcanreducet

3、otalrisk,thismaynotaffectthecostofcapitalorfirmvalue.Well-diversifiedinvestorshavealreadyeliminatedallofthespecificrisk,andrisk-managementmaybeseenasazeroNPVactivityatbest,andatworst,avalue-reducingactivity.However,thereisaroleforriskmanagement.Reductionoftotalriskmayreducetheexp

4、ectedcostsoffinancialdistress,thisincreasesfirmvalue.Presentamethodofinvestmentappraisalthattakesaccountoftotalriskthroughexpectedfinancialdistresscosts.Suchamethodcanresultinthreepossibledecisionsrelatingtoanewproject;rejecttheprojectinvestintheproject;andrisk-manage;orinvestint

5、heprojectbutdonotrisk-manage.Finally,presentsworkedexamples.Whenconsideringafirm’sfinancialriskmanagementactivities,wemayasktwoquestions;whydofirmsengageinsuchactivities,andhowdotheydoit?Howfirmsengageinrisk-managementhasbeenextensivelyconsidered.Methodstypicallyinvolvecombiningf

6、inancialinstrumentssuchasshares,bonds,optionsandfutures,inordertoobtainadesiredpayoffprofile(seeSmithandSmithson(1998)foranexcellentanalysis).Inthispaper,weconsiderthemorecontroversialquestion;whybotherwithfinancialrisk-management?Isfinancialrisk-managementvalueadding?ShapiroandT

7、itman(1998)considerthisquestionofwhetherriskmanagementisdesirable.Afirm’stotalriskconsistsoftwoelements;marketrisk(whichmeasuresthesensitivityofthefirm’sstockpricetomarket-widemovements),andspecificrisk(whichmeasuresthestockpricemovementswhicharespecifictothefirm,andindependentof

8、marketmovements).AccordingtotheCAPMandAP