Abstract

http://ssrn.com/abstract=1829027
 
 

Citations (4)



 


 



Does Enterprise Risk Management Increase Firm Value?


Michael K. McShane


Old Dominion University

Anil Nair


Old Dominion University - College of Business & Public Administration

Elzotbek Rustambekov


Bryant University

July 31, 2010

Journal of Accounting, Auditing, and Finance, Forthcoming

Abstract:     
Enterprise Risk Management (ERM) has emerged as a construct that ostensibly overcomes limitations of silo-based traditional risk management (TRM), yet little is known about its effectiveness. The scant research on the relationship between ERM and firm performance has offered mixed findings, and has been limited by the lack of a suitable proxy for the degree of ERM implementation. Using Standard and Poor’s (S&P) newly available risk management rating, we find evidence of a positive relation between increasing levels of TRM capability and firm value but no additional increase in value for firms achieving a higher ERM rating. Considering these results, we suggest directions for future research.

Number of Pages in PDF File: 33

Keywords: enterprise risk management, insurance companies, insurers

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Date posted: May 3, 2011  

Suggested Citation

McShane, Michael K. and Nair, Anil and Rustambekov, Elzotbek, Does Enterprise Risk Management Increase Firm Value? (July 31, 2010). Journal of Accounting, Auditing, and Finance, Forthcoming. Available at SSRN: http://ssrn.com/abstract=1829027

Contact Information

Michael K. McShane (Contact Author)
Old Dominion University ( email )
Norfolk, VA 23529-0222
United States
Anil Nair
Old Dominion University - College of Business & Public Administration ( email )
Norfolk, VA 23529
United States
Elzotbek Rustambekov
Bryant University ( email )
1150 Douglas Pike
Smithfield, RI 02917-1284
United States
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