Publication detail

Optimizing Risk Structure in Connection with the Corporate Life Cycle and Sector Cyclicity

KONEČNÝ, Z. ZINECKER, M.

Original Title

Optimizing Risk Structure in Connection with the Corporate Life Cycle and Sector Cyclicity

Type

journal article in Scopus

Language

English

Original Abstract

Entrepreneurial activities and thus also investments are connected with two kinds of risks, namely with the operational and financial risk. Both of them are dependent especially on the corporate life cycle and on the sector sensitivity to the economic cycle. The main aim of this article is to propose a methodology supporting managers and investors when estimating the shares of operational and financial risks in the entrepreneurial risk with taking into account the corporate life cycle and the sector sensitivity to the economic cycle. This methodology is subsequently applied in a selected company in the form of a case study and thus their results prove its practical applicability for both financial managers and potential investors as decision makers. This study relies on both secondary and primary data that were collected using databases and a semi-structured questionnaire. The data were processed by using descriptive statistical methods and a case study. The proposed methodology considers the actual phase of the corporate life cycle and the degree of sector sensitivity to the economic cycle. Determining the risk structure should simplify the risk management and subsequently raise the capital access. The methodology also contributes to investment decision-making, because the investors can assess investments with regard to their risk profile.

Keywords

monetary policy, business cycle, macroeconomics, microeconomics, management, corporate life cycle, financial risk, operational risk, investment decision-making, risk management

Authors

KONEČNÝ, Z.; ZINECKER, M.

Released

8. 6. 2016

Publisher

Mendel University Press

Location

Brno

ISBN

1211-8516

Periodical

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis

Year of study

64

Number

3

State

Czech Republic

Pages from

949

Pages to

959

Pages count

11

URL

https://acta.mendelu.cz/64/3/0949/

Full text in the Digital Library

http://hdl.handle.net/11012/70185

BibTex

@article{BUT127314,
  author="Zdeněk {Konečný} and Marek {Zinecker}",
  title="Optimizing Risk Structure in Connection with the Corporate Life Cycle and Sector Cyclicity",
  journal="Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis",
  year="2016",
  volume="64",
  number="3",
  pages="949--959",
  doi="10.11118/actaun201664030949",
  issn="1211-8516",
  url="https://acta.mendelu.cz/64/3/0949/"
}