Recommended readings (Machine generated): 1. Nicolai J. Foss, Henrik Lando and Steen Thomsen (2000), 'The Theory of the Firm', in Boudewijn Bouckaert and Gerrit De Geest (eds), Encyclopedia of Law and Economics, Volume III: The Regulation of Contracts, Article No. 5610, Cheltenham, UK and...

Finance theory does not provide a comprehensive framework for explaining risk management within the imperfect financial environment in which firms operate. Corporate managers, however, rank risk management as one of their most important objectives. Therefore, it is not surprising that papers on...