The Correlation Analysis between Latent Management Risk with Finance and Strategic Investment at Corporations : The Case Study of Lehman Shock

Abstract

Various management risks are inherent in corporate management. The Managers can cope with actualizing management risks in advance. But, It is very difficult to cope with latent management risks for the managers. For example, Toyota Motor before 2008 had remarkably good achievements. But, That Company added up a management loss at 2009 settlement accounts by the influence of Lehman shock. I think that the worsening performance more than assumption happened in Toyota Motor. Accordingly, the latent management risk in financial affairs was inherent in Toyota Motor those days. In this paper, I detect the situation of the latent management risk in financial affairs by Fourier- transforming change of cash-flow in each major company. And analyzing relationship of the latent management risks in financial affairs and the worsening performances after Lehman shock, I verify the size of influence which the latent risk in financial affairs has on management.