文章基本信息

标题：Value Creation of Enterprise Risk Management: Evidence from Malaysian Shariah-Compliant Firms
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作者：Enny Nurdin Sutan Maruhun ; Ruhaya Atan ; Sharifah Norzehan Syed Yusuf 等
期刊名称：International Journal of Academic Research in Business and Social Sciences
电子版ISSN：2222-6990
出版年度：2021
卷号：11
期号：10
页码：922-938
DOI：10.6007/IJARBSS/v11-i10/11197
语种：English
出版社：Human Resource Management Academic Research Society
摘要：Enterprise risk management (ERM) has emerged as an important new corporate risk management practice. The main objective of ERM is to create shareholders value and increase firm value by reducing various costs involved with highly volatile cash flows particularly to mitigate financial distress costs and underinvestment problems. However, findings of prior studies show mixed results on the ability of ERM to create value for firm. Thus, this study aimed at examining the impact of ERM implementation to maximising shareholders value which is measured by financial distress costs, underinvestment problems and firm value among Malaysian Shariah-compliant public-listed companies. This is a cross-sectional study that used quantitative methodology approach. Two types of data were gathered that are (i) primary data; through survey questionnaire and (ii) secondary data; hand-picked from firms’ annual report. Findings of this study demonstrate that ERM implementation has a significant impact to financial distress cost and underinvestment problem. However, the results do not find an impact of ERM implementation to firm value. The outcome of this study would be useful for firms to have a better understanding on the impact of ERM implementation to shareholders value where empirical findings of this study confirmed that ERM implementation is able to increase shareholders value through reduction of financial distress cost and underinvestment problem.