Financial Risk Management and Enterprise Value Creation--Evidence from Non-ferrous Metal Listed Companies in China

摘要

On the basis of retrospections for relative theories on the value influence of firm risk management, this paper constructs a theoretical model which decomposes firms by different combinations which are expressed by cash flow and risk scale. Then we testify the effectiveness of corporate risk management. We take non-ferrous metal industry in Shanghai and Shenzhen Stock Exchanges (2002~2008) as sample, and used pooled model and time fixed effects regression model separately to conduct regression testing, The result supported the hypothesis that risk management can raise enterprise value. And we discovered risk management behavior has different representations among firms with different characters. This provides theoretic and empirical basis to our use for reference from successful experience. On this basis this paper raises relative practical suggestion.