 Determinants and Value of Enterprise Risk Management: Empirical Evidence From the LiteratureNadine Gatzert and Michael Martin Risk Management and Insurance Review, 2015, vol. 18, issue 1, 29-53 Abstract: The development of an enterprise risk management (ERM) program enables companies to manage corporate risks in a holistic manner as opposed to the silo‐based perspective in traditional risk management frameworks. One main question in this regard is what factors drive the implementation of an ERM system in companies and whether ERM programs can actually create value once implemented. This article addresses these questions by conducting a comparative assessment of empirical evidence from the literature regarding the determinants of ERM and its value once implemented. In doing so we are able to illustrate differences in model specifications and the underlying data. Our literature study shows that particularly the company size and the level of institutional ownership are significantly positively related to the implementation of ERM in most empirical studies and, furthermore, that ERM generally has a (significant) positive impact on corporate value and performance (to a different extent and depending on the focus of the studies). However, geographic and/or industrial restrictions regarding the underlying data sets partly limit the generalization of the empirical results. Date: 2015 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:rmgtin:v:18:y:2015:i:1:p:29-53 Access Statistics for this article Risk Management and Insurance Review is currently edited by Mary A. Weiss More articles in Risk Management and Insurance Review from American Risk and Insurance Association |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.