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Greece: How can companies manage the new risks?
Author(s) -
Lobo Bento J.,
Wann Christi,
Fulmer Jr. John G.
Publication year - 2010
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.20623
Subject(s) - profitability index , business , political risk , prime (order theory) , politics , business risks , default risk , credit risk , sovereignty , affect (linguistics) , default , finance , accounting , risk analysis (engineering) , political science , mathematics , combinatorics , law , linguistics , philosophy
CEOs and CFOs must understand that political risk can have a significant impact on a company's profitability. The current situation in Greece is a prime example of this. But how does the risk of Greece's default affect U.S. firms doing business with Greek companies? The authors examine the impact on two kinds of U.S. firms: those exporting to Greece and those importing from Greece. The authors then look at ways to manage the impact of sovereign risk of default. © 2010 Wiley Periodicals, Inc.