The Relationship Between Risk and Firm Performance

Abstract

The relationship between risk and return is a crucial point in typical decision making, and empirical previous studies can help related stakeholders in this process. Henceforth, this chapter aims to present some fundamental theoretical concepts and interpretations of the relationship between risk and firm performance. Accordingly, this chapter offers a review of some highlighted studies in this field by presenting methodologies used and developed by several scholars. The chapter provides a timely reference source for a range of target audience from both academia and industry who have common interests to decompose and examine the relationship between risk and firm performance.