Interaction of Technology Choice and Financial Risk Management under Costly External Financing

• Main Authors: BOYABATLI, Onur, TOKTAY, L. Beril
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2005
• Subjects: Risk Management; Capacity Investment; Flexibility; Financing; Operational Hedging; Operations and Supply Chain Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/844; https://ink.library.smu.edu.sg/context/lkcsb_research/article/1843/viewcontent/Boyabatli_InteractionTechyChoice.pdf
• Institution: Singapore Management University

This paper analyzes the integrated operational and financial risk management portfolio of a firm that determines whether to use flexible or dedicated technology and whether to undertake financial risk management or not. The risk management value of flexible technology is due to its risk pooling bene...