Organizational Risk Management and Performance from the Perspective of Fraud: A Comparative Study in Iraq, Iran, and Saudi Arabia

Hussein Alkhyyoon, Mohammad Reza Abbaszadeh () and Farzaneh Nassir Zadeh
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Hussein Alkhyyoon: Department of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad 9177948974, Iran
Mohammad Reza Abbaszadeh: Department of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad 9177948974, Iran
Farzaneh Nassir Zadeh: Department of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad 9177948974, Iran

JRFM, 2023, vol. 16, issue 3, 1-27

Abstract: This study aimed to examine the impact of enterprise risk management (ERM) on the firm performance of capital markets in developing nations such as Iran, Saudi Arabia, and Iraq. In order to achieve the study’s primary purpose, the economic environments of Iran, Iraq, and Saudi Arabia, three neighboring and developing nations, were examined from 2012 to 2019. The hypotheses were tested using panel regression analysis. According to the data, ERM might boost the return on assets and lower the total assets of Iranian enterprises while raising the total assets of Iraqi firms. In addition, the data demonstrated that ERM decreased sales growth and boosted net profit margins in Saudi Arabian companies. ERM enhanced the return on assets in Iranian enterprises and sales growth in Saudi Arabian firms while lowering sales growth in Iraqi firms. In addition, it was shown that total asset turnover increased in non-fraudulent Iranian companies but fell in their Iraqi counterparts. The outcomes of this study revealed substantial evidence regarding the financial conditions and performance of companies operating in emerging nations. As a result, it can be inferred that ERM efficiency and firm performance can be influenced by the firm’s nature and structure, as the findings in these three economic environments were fundamentally distinct. This research contributed to the literature on ERM as one of the essential elements influencing business performance in emerging economies with varying capital market laws. In addition, the literature and acquired data demonstrate the scope of fraud and its influence on the performance of businesses in developing nations.

Keywords: intellectual capital; human capital; structural capital; relational capital; financial restatement; audit fees (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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