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Contemporary Financial Risk Management Perceptions and Practices of Small-Sized Chinese Businesses

Gao, Simon; Oreal, Serge; Zhang, Jane

Authors

Serge Oreal

Jane Zhang



Abstract

This study investigated the current perceptions and practices of financial risk management at small businesses in China. The researchers took an interpretative approach, using interviews within a case study, to collect qualitative data from Chinese business owners. Despite the well-documented importance of financial risk management in light of the 2008 global financial crises, surprisingly, the data indicated that little progress has been made on implementing an effective financial risk management in many Chinese small businesses. Analysis indicated the core problems in the case study organization stemmed from a lack of expertise, along with insufficient operational resources, for applying risk management. Interestingly, the researchers also found that Chinese small business managers perceived financial risks differently from managers of large organizations in China. Specifically, small business owners preferred to utilize risk transfer and insurance cover to hedge against financial risk.

Citation

Gao, S., Oreal, S., & Zhang, J. (2018). Contemporary Financial Risk Management Perceptions and Practices of Small-Sized Chinese Businesses. In Global Business Expansion: Concepts, Methodologies, Tools, and Applications (917-931). IGI Global. https://doi.org/10.4018/978-1-5225-5481-3.ch041

Publication Date Jul 1, 2018
Deposit Date Feb 24, 2020
Publisher IGI Global
Pages 917-931
Book Title Global Business Expansion: Concepts, Methodologies, Tools, and Applications
Chapter Number 41
ISBN 9781522554813
DOI https://doi.org/10.4018/978-1-5225-5481-3.ch041
Public URL http://researchrepository.napier.ac.uk/Output/2517723