Economic Analysis: Theory and Practice
 

Abstracting and Indexing

РИНЦ
Referativny Zhurnal VINITI RAS
Worldcat
Google Scholar

Online available

EBSCOhost
Eastview
Elibrary
Biblioclub

Archiving

Cyberleninka (12 month OA embargo)

A study of factors that affect the overall risk of owners of ordinary shares

Vol. 18, Iss. 6, JUNE 2019

Received: 19 February 2019

Received in revised form: 4 March 2019

Accepted: 22 March 2019

Available online: 28 June 2019

Subject Heading: ANALYSIS OF INCOME, PROFITS AND COSTS

JEL Classification: D24, D71, D92, G3

Pages: 1111–1123

https://doi.org/10.24891/ea.18.6.1111

Ushakova N.V. Tula State University (TulSU), Tula, Russian Federation
n_ush@list.ru

ORCID id: not available

Vasin A.S. Federal Treasury, Moscow, Russian Federation
fim@tsu.tula.ru

ORCID id: not available

Fatuev V.A. Federal Treasury, Moscow, Russian Federation
fim@tsu.tula.ru

ORCID id: not available

Subject Risk as a degree of profit variability needs measurement and management. The article describes approaches to identifying the minimum and maximum level of overall risk of holders of ordinary shares.
Objectives We focus on understanding factors that affect minimum and maximum risk boundaries of a particular firm.
Methods The paper rests on the study of analytic dependence and mathematical modeling.
Results The minimum level of overall risk is in direct hyperbolic relationship to the difference between the market growth rate and return on equity.
Conclusions When managing the income and expenditure, companies should maintain the total risk ratio within the boundaries from minimum to maximum. Companies can calculate values of these boundaries by using the formulae given in the article.

Keywords: risk, operating leverage, financial leverage, risk management, growth rate

References:

  1. Popova N.N. [Definition and classification of risks in the risk management system of a leasing company]. Rossiiskoe predprinimatel'stvo = Russian Journal of Entrepreneurship, 2010, no. 6-2, pp. 73–78. URL: Link (In Russ.)
  2. Sarkisyan K.A. [The concept of business risks and their insurance]. Forum molodykh uchenykh, 2017, no. 6, pp. 1536–1540. (In Russ.) URL: Link
  3. Panochkina L.V. [The modular application ‘1C: Risk Management’ as innovation in risk management of investment projects]. Rossiiskoe predprinimatel'stvo = Russian Journal of Entrepreneurship, 2014, no. 5, pp. 49–54. URL: Link (In Russ.)
  4. Serdyuchenko O.P. [The risk management system at the enterprise]. Proizvodstvennyi menedzhment: teoriya, metodologiya, praktika = Production Management: Theory, Methodology, Practice, 2015, no. 2, pp. 172–176. (In Russ.)
  5. Shcherbakova I.A. [Standardization of risk management]. Rossiiskoe predprinimatel'stvo = Russian Journal of Entrepreneurship, 2010, no. 4-2, pp. 40–44. URL: Link (In Russ.)
  6. Afonina I.A., Gorchakova T.V. [Development of the theory of the risk assessment and management: From probability theory to the risk management at the enterprise]. Mikroekonomika = Microeconomics, 2013, no. 1, pp. 36–39. (In Russ.)
  7. Barton T.L., Shenkir W.G., Walker P.L. Risk-menedzhment. Praktika vedushchikh kompanii [Making Enterprise Risk Management Pay Off: How Leading Companies Implement Risk Management]. Moscow, Vil'yams Publ., 2008, 208 p.
  8. Kashuba V.M. [Risk management as a system of financial risk management of the company]. ETAP: Ekonomicheskaya Teoriya, Analiz, Praktika = ETAP: Economic Theory, Analysis, and Practice, 2012, no. 2, pp. 68–83. URL: Link (In Russ.)
  9. Deineko E.I. [Development of risk management system in commercial organizations, using the methods of accounting and risk management]. Ekonomika i upravlenie: analiz tendentsii i perspektiv razvitiya = Economics and Management: Analysis of Trends and Development Prospects, 2015, no. 20, pp. 140–144. (In Russ.)
  10. Kandrashina E.A. [Operating leverage as an entrepreneurial risk indicator of the business model]. Vestnik Samarskogo gosudarstvennogo ekonomicheskogo universiteta = Vestnik of Samara State University of Economics, 2014, no. 4, pp. 54–58. URL: Link (In Russ.)
  11. Ushakova N.V., Erina T.Yu., Ushakov E.A. [Managing the overall risk at the enterprise level through the change in the balance of variable and fixed costs]. Izvestiya Tul'skogo gosudarstvennogo universiteta. Ekonomicheskie i yuridicheskie nauki = Izvestiya Tula State University. Economic and Legal Sciences, 2008, no. 2, pp. 91–101. URL: Link (In Russ.)
  12. Arrow K.J. Aspects of the Theory of Risk Bearing. Helsinki, Yrjo Jahnssonin Saatio, 1965.
  13. Romashkina O.V. [Identifying and managing risk appetite and risk tolerance]. Vestnik Universiteta (Gosudarstvennyi universitet upravleniya) = University Bulletin (State University of Management), 2012, no. 3, pp. 248–250. URL: Link (In Russ.)
  14. Ivanova V.O. [The modern theory of risk management and corporate risk management principles of Rosatom]. Ekonomika i upravlenie: analiz tendentsii i perspektiv razvitiya = Economics and Management: Analysis of Trends and Development Prospects, 2012, no. 1-2, pp. 106–113. (In Russ.)
  15. Ushakova N.V., Kalugin A.V., Ushakov E.A. [Risk management at the enterprise level as an integrating idea of courses in management, marketing, and finance]. Nauchnye trudy MIM LINK, 2008, no. 23, pp. 115–124. (In Russ.)
  16. Rogov M. [Convergence of financial risk management (FRM) and risk management of organizations (ERM)]. Problemy analiza riskov = Issues of Risk Analysis, 2013, vol. 10, no. 1, pp. 64–77. (In Russ.)
  17. Rogova M.V., Kasperovich S.A. [Model for managing balanced growth as a tool for ensuring sustainable development of industrial enterprises]. Trudy BGTU. Ser. 5: Ekonomika i upravlenie = Proceedings of BSTU. Series: Economics and Management, 2017, no. 1, pp. 235–239. URL: Link (In Russ.)
  18. Bogatko A.N. [Methodology of precision financial and production management of balanced development of industrial corporations]. Uchet. Analiz. Audit = Accounting. Analysis. Auditing, 2017, no. 2, pp. 47–58. URL: Link (In Russ.)
  19. Kukukina I.G., Klimova S.V. [Economic Sustainability Model of Energy Companies in Terms of Business Risk and Overhead Impact]. Vestnik Ivanovskogo gosudarstvennogo energeticheskogo universiteta = Vestnik IGEU, 2013, no. 3, pp. 74–80. URL: Link (In Russ.)

View all articles of issue

 

ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

Journal current issue

Vol. 18, Iss. 9
September 2019

Archive