Information, unternehmensinterne Kommunikation und Risikopolitik

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

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.

• Item Type: MPRA Paper
• English Title: Information, intra-firm communication and risk policy
• Language: German
• Keywords: Exchange rate risk; international trade; hedging; information
• Subjects: D - Microeconomics > D8 - Information, Knowledge, and Uncertainty; F - International Economics > F3 - International Finance > F31 - Foreign Exchange; D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D51 - Exchange and Production Economies; F - International Economics > F3 - International Finance > F33 - International Monetary Arrangements and Institutions

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