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Risk Management of SMEs in the Republic of Croatia

In: Financije teorija i suvremena pitanja = Finance - theory and contemporary issues

Author

Listed:
  • Ivana Pelivan

    (Include Ltd)

  • Marijana Ćurak

    (University of Split, Faculty of Economics)

  • Sandra Pepur

    (University of Split, Faculty of Economics)

Abstract

Exposure to various risks in the business of companies and their impact on company performance creates the need for activities that reduce variability of cash flows that determine the company value. However, there are significant differences among companies in taking risk management activities. Therefore, beside the exploration of risk management practices, this study investigates the determinants of differences in risk management activities of small and medium size companies in the Republic of Croatia. Although the results of the analysis show that about half of the analysed companies apply some of the risk management methods, most often insurance, they also confirm insufficient expertise and lack of information on risk exposure and its management in these business companies. Management of market risk, pure risk, credit risk and operational risk is determined by various firmspecific and manager-specific characteristics.

Suggested Citation

  • Ivana Pelivan & Marijana Ćurak & Sandra Pepur, 2018. "Risk Management of SMEs in the Republic of Croatia," Occasional Publications, in: Financije teorija i suvremena pitanja = Finance - theory and contemporary issues, edition 1, volume 1, chapter 15, pages 351-380, Josip Juraj Strossmayer University of Osijek, Faculty of Economics.
    • Handle: RePEc:osi:chaptr:18-15
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    risks; risk management; determinants; small and medium size companies;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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