Decreasing Negative the Delivery Risk Influence on the Recepient's Firm Value: Portfolio Approach
11 Pages Posted: 11 Nov 2008
Date Written: November 6, 2008
The basic financial purpose of an enterprise is maximization of its value. Inventory management should also contribute to realization of this fundamental aim. The enterprise value maximization strategy is executed with a focus on risk and uncertainty. This article presents the consequences for the recipients firm that can result from operating risk that is related to delivery risk generated by the suppliers. The present article offers a method that uses portfolio management theory to chose the suppliers.
Keywords: Corporate liquidity, firm value, delivery risk
JEL Classification: G39, G32, G11, M11, D81
Suggested Citation: Suggested Citation