Risk exposures and risk management techniques: Their impact on earnings per share

• Main Author: Ferrer, Rodiel C.
• Format: text
• Published: Animo Repository 2010
• Subjects: Earnings per share; Risk management; Accounting; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/5218
• Institution: De La Salle University

This study investigated risk exposures, risk treatments, implementation of policies, guidelines and monitoring in relation to performance in terms of earnings per share. The venue was Bataan Economic Zone in the Philippines comprising of 38 companies or 100% locators as survey participants, all manufacturing firms. Statistical treatment of data gathered revealed that the profile of the subject companies in terms of number of years in operation showed no correlation (.001) whereas manufacturing industry classification (-.193), nationality of the owners (-.153) and previous loss experience identified (-.027) were with negligible negative correlation and risk outlook of the firm revealed moderate negative correlation (-.450). In addition, the companies were moderately exposed in terms of speculative risks namely output and input commodity price risks covering physical assets, human resource, legal liabilities and work related injuries. With respect to respondents mitigating the risks, this was found to be moderately implemented with risk management policies and guidelines as fairly implemented while monitoring risks obtained a qualitative description moderately always. It further identified that the variables of the study do not show significant relationship. Risk treatments, policies and guidelines and monitoring are wanting in terms of full implementation. This can be effected by installing a qualified risk manager who would take charge of the whole risk management process.