Original scientific paper
https://doi.org/10.1080/1331677X.2022.2134906
Does enterprise risk management benefit manufacturing firms? Evidence from China
Guochen Pan
Lingyun Zheng
Zhixiang Geng
Mengqi Liu
Abstract
It is observed that Enterprise risk management (ERM) framework has
been adopted by some manufacturing firms in China in the past
years. To investigate the effectiveness of ERM, data of A-share listed
manufacturing firms in Shanghai and Shenzhen stock exchange during
2010-2019 are adopted from Wind database and CSMAR database,
two large domestic databases, to examine the impact of ERM
on value of manufacturing firms. Treatment effects model and genenralised
method of moments (GMM) are employed to derive the
empirical results. Our results show that adoption of ERM can add
value to the firms, and firms benefitmore from high-quality ERM program.
Furthermore, the impact of ERM seems to be more significant
among the manufacturing firms with smaller scale, or stronger institutional
shareholding, or international business. Our findings encourage
the manufacturing firms to implement ERM program and
improve the program to achieve its targets.
Keywords
Enterprise risk management (ERM); manufacturing firms; firm value
Hrčak ID:
306691
URI
Publication date:
30.4.2023.
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