دانلود رایگان مقاله انگلیسی مدیریت ریسک سازمانی و عملکرد شرکت - الزویر 2017

abstract

This paper investigates whether a relationship exists between the extent of implementation of enterprise risk management (ERM) systems and the performance of Italian listed companies. While many contributions in the literature focus on the determinants of ERM adoption and use one-dimensional feature to proxy for ERM implementation, we detect the consequences of ERM implementation and capture a variety of features to measure the sophistication of the ERM system. The results show that firms with advanced levels of ERM implementation present higher performance, both as financial performance and market evaluation. Additional tests also corroborate the expectation that effective ERM systems lead to higher performance by reducing risk exposure and that reverse causality between ERM and performance is not present in the short term. The study provides a twofold contribution to the ERM literature. First, it introduces new and more complete measures for ERM implementation, concerning not only corporate governance bodies dedicated to risk management, but also the characteristics of the risk assessment process. Moreover, it provides evidence of a positive relationship between ERM implementation and firm performance in an underinvestigated context such as Italy.

Conclusions, limitations, and further research

This paper investigates whether the implementation of ERM systems affects firm accounting performance and market evaluation in a sample of Italian non-financial listed companies in the timeframe 2011e2013. As such, it follows a relatively new line of large-scale research investigating whether increased attention towards ERM revealed by the creation of ad hoc RM officers and committees and the adoption of certain risk assessment mechanisms affect firm performance. Calls for research in this field of study stem from regulators, practitioners, and academics, and increased both after financial scandals occurred all around the world and throughout the current economic crisis. Moreover, focusing on the Italian context, the study moves the attention from the US to a European country that, like the US, has been plagued by corporate scandals, followed by a number of regulatory interventions stressing the crucial role of RM in the CG system. But, it is characterized by smaller firms and capital market, and weaker investor protection as compared to the US, which makes it an alternative context of study. By measuring the extant of ERM sophistication as the simultaneous adoption of different ERM components, which are identified from guidelines and best practices, the study discriminates between companies with sophisticated ERM and companies with basic or lacking ERM.