Valuation of enterprise risk management in the manufacturing industry
The paper examines the valuation of enterprise risk management (ERM) through its effects on firm cost and efficiency. Consistent with the empirical evidence, ERM is found to benefit larger firms by reducing earning variability and providing higher returns on equity. The results suggest significant e...
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my.um.eprints.228912019-10-31T08:00:09Z http://eprints.um.edu.my/22891/ Valuation of enterprise risk management in the manufacturing industry Zou, Xiang Isa, Che Ruhana Rahman, Mahfuzur HD Industries. Land use. Labor HF Commerce The paper examines the valuation of enterprise risk management (ERM) through its effects on firm cost and efficiency. Consistent with the empirical evidence, ERM is found to benefit larger firms by reducing earning variability and providing higher returns on equity. The results suggest significant evidence of a value premium attached to effective ERM programmes. It is found that an effective ERM programme adds value to manufacturing firms by mitigating firm cost and enhancing firm efficiency. The results also suggest that the strong valuation effects of ERM are associated with cost management, inventory management, asset management, and cash flow management in China. Taylor & Francis 2019 Article PeerReviewed Zou, Xiang and Isa, Che Ruhana and Rahman, Mahfuzur (2019) Valuation of enterprise risk management in the manufacturing industry. Total Quality Management & Business Excellence, 30 (11-12). pp. 1389-1410. ISSN 1478-3363 https://doi.org/10.1080/14783363.2017.1369877 doi:10.1080/14783363.2017.1369877 |
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HD Industries. Land use. Labor HF Commerce Zou, Xiang Isa, Che Ruhana Rahman, Mahfuzur Valuation of enterprise risk management in the manufacturing industry |
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The paper examines the valuation of enterprise risk management (ERM) through its effects on firm cost and efficiency. Consistent with the empirical evidence, ERM is found to benefit larger firms by reducing earning variability and providing higher returns on equity. The results suggest significant evidence of a value premium attached to effective ERM programmes. It is found that an effective ERM programme adds value to manufacturing firms by mitigating firm cost and enhancing firm efficiency. The results also suggest that the strong valuation effects of ERM are associated with cost management, inventory management, asset management, and cash flow management in China. |
format |
Article |
author |
Zou, Xiang Isa, Che Ruhana Rahman, Mahfuzur |
author_facet |
Zou, Xiang Isa, Che Ruhana Rahman, Mahfuzur |
author_sort |
Zou, Xiang |
title |
Valuation of enterprise risk management in the manufacturing industry |
title_short |
Valuation of enterprise risk management in the manufacturing industry |
title_full |
Valuation of enterprise risk management in the manufacturing industry |
title_fullStr |
Valuation of enterprise risk management in the manufacturing industry |
title_full_unstemmed |
Valuation of enterprise risk management in the manufacturing industry |
title_sort |
valuation of enterprise risk management in the manufacturing industry |
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Taylor & Francis |
publishDate |
2019 |
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http://eprints.um.edu.my/22891/ https://doi.org/10.1080/14783363.2017.1369877 |
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1651867372020039680 |