Artikel
Measuring path dependency
While risk management gained popularity during the last decades even some of the basic risk types are still far out of focus. One of these is path dependency that refers to the uncertainty of how we reach a certain level of total performance over time. While decision makers are careful in accessing how their position will look like the end of certain periods, little attention is given how they will get there through the period. The uncertainty of how a process will develop across a shorter period of time is often 'eliminated' by simply choosing a longer planning time interval, what makes path dependency is one of the most often overlooked business risk types. After reviewing the origin of the problem we propose and compare seven risk measures to access path. Traditional risk measures like standard deviation of sub period cash flows fail to capture this risk type. We conclude that in most cases considering the distribution of the expected cash flow effect caused by the path dependency may offer the best method, but we may need to use several measures at the same time to include all the optimisation limits of the given firm.
- Sprache
-
Englisch
- Erschienen in
-
Journal: UTMS Journal of Economics ; ISSN: 1857-6982 ; Volume: 8 ; Year: 2017 ; Issue: 1 ; Pages: 29-37 ; Skopje: University of Tourism and Management
- Klassifikation
-
Wirtschaft
Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- Thema
-
risk management
project
firm
financial planning
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Juhasz, Peter
Varadi, Kata
Vidovics-Dancs, Agnes
Szaz, Janos
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Tourism and Management
- (wo)
-
Skopje
- (wann)
-
2017
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:45 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Artikel
Beteiligte
- Juhasz, Peter
- Varadi, Kata
- Vidovics-Dancs, Agnes
- Szaz, Janos
- University of Tourism and Management
Entstanden
- 2017
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