Munich Personal RePEc Archive

Information, unternehmensinterne Kommunikation und Risikopolitik

Broll, Udo and Gilroy, Bernard Michael and Wahl, Jack E. (2003): Information, unternehmensinterne Kommunikation und Risikopolitik.

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Abstract

Based upon the foundations of mean-variance decision-making theory, we demonstrate that a change in the risk situation of an international enterprise open currency position does not inevitably require a corresponding hedging accommodation. Given a new risk situation, whether a revision of the hedging-strategy is appropriate will depend upon the elasticity of risk aversion. The elasticity of risk aversion is a decisive indicator; however, it is rarely scrutinized in the literature. In addition, our analysis illustrates the cost saving advantages of the applied (μ,σ)-principal compared to the Bernoulli-principal for information procurement processes. Applying the (μ,σ)-principal facilitates and enhances firm-internal communication information levels.

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