The Influence of Risk Management Practices on Financial Market Stability: Insights from Lebanon

• Autor(a) principal: Houwayji, Sabah
• Data de Publicação: 2024
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.26/49948; https://doi.org/Houwayji, S. (2024). The Influence of Risk Management Practices on Financial Market Stability: Insights from Lebanon. Dutch Journal of Finance and Management, 7(1), 25671. https://doi.org/10.55267/djfm/14181; https://doi.org/10.55267/djfm/14181
• topic: Risk Management; Diversification; Hedging; Contingency Planning; Financial Market Volatility

This research investigates the relationship between various risk management practices, including diversification, hedging, and contingency planning, and their impact on the dependent variable, financial market volatility. The study is based on a sample size of 127 observations in the context of Lebanon's financial markets. The primary objective of this research is to analyze how risk management practices employed by financial institutions and market participants affect the stability of Lebanon's financial markets. To achieve this, the study employs a quantitative approach, utilizing statistical analysis and regression modeling to assess the relationships between the independent variables (risk management practices) and the dependent variable (financial market volatility). The independent variables in this study encompass risk management practices, namely diversification, hedging, and contingency planning. These practices are crucial components of financial risk management strategies employed by institutions and investors. By examining their influence on financial market stability, this research aims to provide insights into effective risk mitigation strategies within the Lebanese financial context. The decision of Lebanon as the study's context is significant due to the unique economic and geopolitical challenges faced by the country. The financial markets in Lebanon have been subject to various external and internal pressures, making the analysis of risk management practices particularly relevant. The sample size of 127 observations allows for robust statistical analysis, ensuring the validity of the findings. The research findings are expected to contribute to the existing body of knowledge on risk management and financial market stability, with potential implications for policymakers, financial institutions, and investors operating in Lebanon and similar emerging market economies.