EconPapers    
Economics at your fingertips  
 

Value relevance of enterprise risk management: the Indian case

Sankalp Purushottam Naik, Dhruv Ajoy Jauhar and Ch.V.V.S.N.V. Prasad

International Journal of Business Continuity and Risk Management, 2023, vol. 13, issue 3, 229-247

Abstract: The global financial crisis (GFC) of 2008-2010 and myriads of banking frauds and accounting scandals following the Satyam debacle precipitated the need for improved corporate governance among Indian firms. Stakeholders began exploring new avenues of risk management practices. In this paper, we attempt to assess the role of ERM in value creation for companies listed on the Indian stock exchange. Ours is the first empirical study with a cross-sectional analysis for India and is among the very few ERM studies conducted for a developing country. Our analysis confirms the positive influence of the extent of ERM engagement on firm value. Among control variables, firm size had a negative impact on firm value, while financial leverage and profitability positively influenced firm value. This paper makes a strong case for ERM adoption and confirms its role as a wealth protector and creator in a developing country setting.

Keywords: enterprise risk management; ERM index; chief risk officer; CRO; firm value; ERM engagement; COVID-19. (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=132904 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbcrm:v:13:y:2023:i:3:p:229-247

Access Statistics for this article

More articles in International Journal of Business Continuity and Risk Management from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().

 
Page updated 2025-03-19
Handle: RePEc:ids:ijbcrm:v:13:y:2023:i:3:p:229-247