The Perception of Market and Economic Risks by Owners and Managers of Enterprises in the V4 Countries

Hudáková, Mária; Gabryšová, Marie; Petráková, Zora; Buganová, Katarína; Krajčík, Vladimír

doi:10.7441/joc.2021.04.04

Cited by 20 publications

(20 citation statements)

References 38 publications

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“…Therefore, from the previous research evidence and academic conclusions, there is an inevitable relationship between internal-control willingness and the level of enterprise risk-taking. Moreover, in enterprise practice, the internal-control defects of Enron, Societe Generale, and China Guitang all expose the phenomenon of subjective manipulation, resulting in increased business risks, abnormal stock prices, huge economic losses, or bankruptcy (Hudakova et al, 2021;Oulehlova et al, 2021).…”

Section: Discussionmentioning

confidence: 99%

Study on the negative effect of internal-control willingness on enterprise risk-taking

Chen

Liu

2022

Front. Psychol.

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In the traditional cognition, the factors that affect the level of internal control are usually based on the objective factors such as corporate characteristics, financial status, and governance structure. However, the internal control defects of many famous companies expose the phenomenon of subjective manipulation, and this leads us to focus on the subjective factor of internal control, which we call internal-control willingness. We define “internal-control willingness” as the degrees of subjective initiative of the internal-control construction and execution activities. Additionally, we propose a method for measuring internal-control willingness, using text analysis and machine learning. Then, we examine the impact of internal-control willingness on enterprise risk-taking, through the internal-control, financial, and market data of China A-share main board enterprises in 2011–2018. The study found that (1) internal-control willingness has a significant positive impact on internal-control level, which can fairly achieve the measurement of internal-control subjective initiative. (2) It confirms that internal-control willingness lowers corporate risk-taking. (3) Further research finds that state-owned enterprises strengthen internal-control willingness and their risk-taking level is significantly lower than that of non-state-owned enterprises. This paper suggests that the regulatory authorities actively urge the board of directors to strengthen internal-control willingness.

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Section: Discussionmentioning

confidence: 99%

Study on the negative effect of internal-control willingness on enterprise risk-taking

Chen

Liu

2022

Front. Psychol.

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“…Therefore, it is important to examine the perception of SMEs risks from various perspectives and to carry out comparative analyses that would identify critical points where risks arise within the cluster cooperation of SMEs. The perception of business risks can also depend on the length of business activities, which was studied by Hudakova et al (2021), who conducted empirical research in the years 2019-2020 in the V4 countries. Their results confirm that SME managers and owners consider market and economic risks to be the most important.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Risk Management Level Determinants in Visegrad Countries – Sectoral Analysis

Belás

Gavurová

Kubák

et al. 2023

Technological and Economic Development of Economy

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Increasing competition has emphasized the need for creating and using more effective strategies at the level of SMEs to achieve competitive advantage. SMEs face higher risks in terms of the globalization due to the limited resources as well as size. The objective of the study was to examine the determinants of risk management with an emphasis on the sector specifics of SMEs in the V4 countries. This enables the quantification of sectoral differences in relation to the socioeconomic determinants. The research sample included 1585 SMEs from the V4 countries. The data obtained from SME managers and owners were processed using the descriptive statistics and logistic regression. The results of the analyses confirm the existence of differences across SMEs concerning the risk management, which are determined by the country in which a given company operates, industry, gender and age of its manager or the owner of the company. The results of the study provide a valuable platform for the development of systems to measure and assess business risks in companies and to set up training systems. It will also enhance the development of international and national benchmarking indicators and the creation of international databases for comparative analyses.

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“…Chen et al (2016) focus on the effect of policy uncertainty on enterprise innovation caused by changes in local officials, and argue that economic policy uncertainty will reduce the innovation efficiency of enterprises. More recently, Hudakova et al (2021) focused on assessing the impact of the length of entrepreneurship on the perception of the most important business risks in V4 countries. The results show that owners and managers of enterprises still consider market and economic risks to be most important in their business.…”

Section: Literature Reviewmentioning

confidence: 99%

Economic Policy Uncertainty and Family Firm Innovation: Evidence From Listed Companies in China

Yong

Dong²,

Lyu³

et al. 2022

Front. Psychol.

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With the advancement of China’s economic transformation, the impact of economic policy uncertainty on family firms has become increasingly significant. The “familism” of family firms makes them more motivated to maintain family harmony, pursue innovative activities, and the long-term development of enterprises when faced with economic policy uncertainty. In this paper, we employed the data of listed Chinese family firms from 2010 to 2018 to analyze the impact of economic policy uncertainty on family business innovation activities, analyze the inherent characteristics of family firm innovation, and find the path that enables the innovative activities of family firms and provides a valuable experience for the innovation of private enterprises in economic policy uncertainty. We provide evidence that economic policy uncertainty positively relates to family firm innovation. Moreover, the relationship is affected by factors such as directors’ executive background and access to state-owned equity. Further analysis indicates that economic policy uncertainty can promote family firms’ innovation activities by improving their risk-taking, internal capital market circulation, and reducing political connections.

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The Perception of Market and Economic Risks by Owners and Managers of Enterprises in the V4 Countries

Cited by 20 publications

References 38 publications

Study on the negative effect of internal-control willingness on enterprise risk-taking

Study on the negative effect of internal-control willingness on enterprise risk-taking

Risk Management Level Determinants in Visegrad Countries – Sectoral Analysis

Economic Policy Uncertainty and Family Firm Innovation: Evidence From Listed Companies in China

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