The relationship between ownership structure and performance has received considerable attention in the literature. This paper focuses on the relationship between ownership structure and risk management. Specifically, the paper addresses the relationship between (1) the identity and influence of the largest shareholder and (2) whether risk management decisions are made in order to satisfy shareholders in particular or stakeholders in general. Covering a sample of Danish, non-financial companies a statistically significant, negative relationship is found between personal ownership and the likelihood that the aim of risk management is to satisfy shareholders in particular. No significant relationship is found for foundation-owned companies. Furthermore, a positive relationship is found between the size of the company and the tendency to satisfy shareholders in particular. The finding in relation to personal ownership is believed to rest on non-financial relations between the companies and the persons in question.
Translated title of the contribution
Ownership and Risk Management: Shareholder versus Stakeholder Satisfaction
Original language
English
Title of host publication
Conference Proceedings for 28th EIBA Conference
Publication year
2002
Publication status
Published - 2002
Event
28th EIBA Conference - Duration: 8 Dec 2002 → 10 Dec 2002
Conference
Conference
28th EIBA Conference
Periode
08/12/2002 → 10/12/2002
Research areas
Ownership Structure, Risk Management, Shareholders versus Stakeholders