Inherent in corporate governance is the conflict between satisfying stakeholders in general and satisfying shareholders in particular. This empirical study of Danish non-financial companies enhances the understanding of the interaction between corporate risk management and corporate governance. The study finds (1) that contrary to the economic model of human behaviour, companies in which the largest shareholder is a person tend to satisfy stakeholders in general as opposed to shareholders in particular and (2) that companies with an aim of stakeholder satisfaction pursue a more comprehensive hedging strategy than companies with an aim of shareholder satisfaction.
Translated title of the contribution
Stakeholder Versus Shareholder Satisfaction in Corporate Risk Management
Original language
English
Publication year
2004
Number of pages
37
Publication status
Published - 2004
Event
2004 Annual Meeting of EFMA - Duration: 30 Jun 2004 → 3 Jul 2004