International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss


Impact of Size and Risk Management on Economic Performance of Multinational Corporations
Tariq Javed, Muhammad Yar Khan

This study explores the impact of size and risk management ability on economic performance of multi-national corporations. Economic performance is observed under different level of Size, Financial Leverage, and Risk Management ability of multi-national corporations. Economic performance is determined on the basis of three elements Return on Assets, Return on Equity and Return on Investment. By examining twenty multi-national firms, we found that economic performance is positively related with the size of the firm, risk management abilities and negatively related with the level of financial leverage. This paper shows how the risk management process influences the economic performance of organizations.

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