Managerial practice differs from standard capital budgeting theory in a number of respects. For example, managers often take projects that have negative NPV (e.g., R & D investments) due to their flexibility, synergy strategic positioning etc. Furthermore, managers continue to use...

This study investigates foreign exchange risk management in major Finnish firms. The shift to a floating foreign‐exchange regime has increased risk aversion and intensified risk management in a number of firms. The managers feel they can forecast foreign exchange development, and that they...

Purpose: The purpose of this paper is to investigate whether the relationship between capital structure and firm performance in small- and medium-sized enterprises (SMEs) is moderated by credit risk. Design/methodology/approach: The authors empirically test whether an SME’s credit risk...