What is it about?
The paper assesses quantitative relationship between Corporate Governance, ERM (Entreprise Risk management) and value of the firm.
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Why is it important?
The research results provide quantitative justifications for the boards to make investments in ERM and Corporate Governance initiatives for improved shareholder wealth.
Perspectives
Firm value is jointly and positively impacted by ERM & Corporate Governance initiatives although the impact was less significant. Unexpectedly, ERM initiative was significantly and negatively impacted by determinants such as intangibility, and profitability. Firm size was the only determinant that showed significant and positive impact on firm value. Relative to UAE the corporate governance mechanism was active in Bahrain, Saudi Arabia, Kuwait and Oman firms. Further, the existence of audit committees in the GCC firm’s boards and ERM adoption significantly positively impacted the corporate governance by 3.42% and 1.7239% respectively.
Dr Ananth Rao
University of Dubai
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This page is a summary of: Empirical Analysis of Joint Impact of Enterprise Risk Management and Corporate Governance on Firm Value, International Review of Advances in Business Management and Law, April 2018, University of Dubai,
DOI: 10.30585/irabml.v1i1.66.
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