IDEAS home Printed from https://ideas.repec.org/p/uno/wpaper/2005-10.html
   My bibliography  Save this paper

Managerial Career Concerns and Risk Management

Author

Listed:
  • Nam, Jouahn

    (Pace University)

  • Wang, Jun

    (Baruch College)

  • Zhang, Ge

    (University of New Orleans)

Abstract

We present a dynamic model of corporate risk management and managerial career concerns. We show that managers with high (low) career concerns are more likely to speculate (hedge) early in their careers. In the later stage of their careers when managers have less career concerns, there is no speculative motive for self interested managers. On the other hand, managers with minimal career concerns engage in neither hedging nor speculation early in their careers, but they may choose to hedge after poor early performance.

Suggested Citation

  • Nam, Jouahn & Wang, Jun & Zhang, Ge, 2005. "Managerial Career Concerns and Risk Management," Working Papers 2005-10, University of New Orleans, Department of Economics and Finance.
  • Handle: RePEc:uno:wpaper:2005-10
    as

    Download full text from publisher

    File URL: http://louisdl.louislibraries.org/cgi-bin/showfile.exe?CISOROOT=/EFW&CISOPTR=41
    Download Restriction: no

    More about this item

    Keywords

    Risk management; Dynamic model; Hedging; Speculation;

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uno:wpaper:2005-10. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Janet Murphy Crane). General contact details of provider: http://edirc.repec.org/data/deunous.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.