Exploring the Relationship between Risk and Performance in Listed Indian Firms

IF 1.9 Q3 BUSINESS

International Journal of the Economics of Business Pub Date : 2020-05-27 DOI:10.1080/13571516.2020.1767981

R. DasGupta, S. G. Deb

引用次数: 3

Abstract

Abstract This paper analyses the relationship between a firm’s accounting risk and performance for a large sample of listed Indian firms observed over the period 2000–2015. We find evidence that the relationship is not absolute but contingent on the level of firm performance. We show that poorly performing firms below a threshold level of performance exhibit a ‘paradoxical’ or inverse relationship, while the firms above the threshold exhibit a non-linear relationship with a clear point of inflection. We posit that the former observation is due to a risk-seeking behaviour by the poor performers in line with behavioural finance theories while the latter is a result of a mixed-risk-behaviour.

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印度上市公司风险与绩效关系研究

摘要本文以2000-2015年期间观察到的印度上市公司为样本，分析了公司会计风险与业绩之间的关系。我们发现证据表明，这种关系不是绝对的，而是取决于企业绩效水平。我们发现，业绩低于阈值水平的企业表现出一种“悖论”或反比关系，而高于阈值的企业表现出一种具有明确拐点的非线性关系。我们假设，前一种观察结果是由于表现不佳的人根据行为金融学理论寻求风险行为，而后者是混合风险行为的结果。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of the Economics of Business BUSINESS-

CiteScore

2.60

自引率

8.30%

发文量

期刊介绍： International Journal of the Economics of Business presents original, peer reviewed research in economics that is clearly applicable to business or related public policy problems or issues. The term "business" is used in its widest sense to encompass both public and private sector—governmental, private non-profit and cooperative organizations, as well as profit-seeking enterprises. International Journal of the Economics of Business carries papers relating to three main spheres: The organization—to analyse and aid decision making and the internal organization of the business; The industry—to analyse how businesses interact and evolve within and across industries.