Does Risk Management Add Value? A Survey of the Evidence

By C. Smithson, Betty Simkins. 2005

211 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Safety, Risk, Reliability and Quality

View Paper: https://www.semanticscholar.org/paper/ee123b0b352c9cf96d454645a6b8ed9cf7ad9653

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Citations in the corpus

Enterprise Risk Management and Firm Performance (2012, background): “Smithson and Simkins (2005) provide an excellent review of the literature examining the value relevance of risk management.”
The Valuation Implications of Enterprise Risk Management Maturity (2015, unknown): “Tobin’s Q was chosen as it has been widely used in empirical risk management studies (Smithson and Simkins, 2005) and in particular three recent, directly applicable, ERM value implication studies performed by Hoyt and Liebenberg (2011), McShane et al (2011) and Lin et al (2012).”
The Impact of Enterprise Risk Management on the Marginal Cost of Reducing Risk: Evidence from the Insurance Industry (2014, unknown): “Consistent with this theory, 92% of the world’s 500 largest companies in 2003 report using derivatives (Smithson and Simkins, 2005).”
Does Enterprise Risk Management Increase Firm Value? (2011, methodology): “Dependent Variable (Firm Value) Our dependent variable is firm value, which we proxy for using Tobin’s Q, the most commonly used measure of firm value in empirical risk management studies (Smithson & Simkins, 2005).”
The Value of Enterprise Risk Management: Evidence from the U.S. Insurance Industry (2006, unknown): “In their review of empirical studies on the value-relevance of risk management, Smithson and Simkins (2005) report that the majority of studies use Tobin’s Q to proxy for firm value.”
The Value of Enterprise Risk Management (2011, unknown): “In their review of empirical studies on the value relevance of risk management, Smithson and Simkins (2005) report that the majority of studies use Tobin’s Q to proxy for firm value. Consistent with Cummins, Lewis, and Wei (2006), we define Tobin’s Q as the market value of equity plus the book value”
Risk management and firm value: recent theory and evidence (2016, methodology): “Additionally, they find that UK firms hedging interest rate risk are rewarded with higher values than those that hedge foreign currency risk, consistent with the results of Smithson and Simkins (2005).”