The effect of enterprise risk management on firm value: evidence from Malaysian technology firms

This paper aims to examine the relationship between ERM and firm value in Malaysia. In the past literature, ERM had been argued to increase firm value but empirical evidence shows mixed and inconclusive results. Using sample from 2004 to 2012, this paper furthers the analysis on the relationship bet...

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Main Authors:	Mohd. Hafizuddin Syah Bangaan Abdullah, Hawati Janor, Mohamad Abdul Hamid, Puan Yatim
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2017
Online Access:	http://journalarticle.ukm.my/11299/ http://journalarticle.ukm.my/11299/ http://journalarticle.ukm.my/11299/1/12472-60317-1-PB.pdf

id	ukm-11299
recordtype	eprints
spelling	ukm-112992018-01-24T13:34:31Z http://journalarticle.ukm.my/11299/ The effect of enterprise risk management on firm value: evidence from Malaysian technology firms Mohd. Hafizuddin Syah Bangaan Abdullah, Hawati Janor, Mohamad Abdul Hamid, Puan Yatim, This paper aims to examine the relationship between ERM and firm value in Malaysia. In the past literature, ERM had been argued to increase firm value but empirical evidence shows mixed and inconclusive results. Using sample from 2004 to 2012, this paper furthers the analysis on the relationship between ERM and firm performance among technology firms in Malaysia. Indeed, technology industry is the fastest growing and a volatile industry, which requires continuous innovation. These make technology firms more prone to risk exposure. In analyzing this issue, dynamic panel data is employed to allow cross-sectional and time series analysis. Our results show that the implementation of ERM in the previous year has strong negative relationship with firm value at 1 percent significance level. It supports the argument that the effect of ERM is not immediately realized as well as entails high implementation cost. The findings provide useful input and insight in formulating new policy in relation to corporate governance, particularly ERM in Malaysia. Penerbit Universiti Kebangsaan Malaysia 2017 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/11299/1/12472-60317-1-PB.pdf Mohd. Hafizuddin Syah Bangaan Abdullah, and Hawati Janor, and Mohamad Abdul Hamid, and Puan Yatim, (2017) The effect of enterprise risk management on firm value: evidence from Malaysian technology firms. Jurnal Pengurusan, 49 . pp. 3-11. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/issue/view/975
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	This paper aims to examine the relationship between ERM and firm value in Malaysia. In the past literature, ERM had been argued to increase firm value but empirical evidence shows mixed and inconclusive results. Using sample from 2004 to 2012, this paper furthers the analysis on the relationship between ERM and firm performance among technology firms in Malaysia. Indeed, technology industry is the fastest growing and a volatile industry, which requires continuous innovation. These make technology firms more prone to risk exposure. In analyzing this issue, dynamic panel data is employed to allow cross-sectional and time series analysis. Our results show that the implementation of ERM in the previous year has strong negative relationship with firm value at 1 percent significance level. It supports the argument that the effect of ERM is not immediately realized as well as entails high implementation cost. The findings provide useful input and insight in formulating new policy in relation to corporate governance, particularly ERM in Malaysia.
format	Article
author	Mohd. Hafizuddin Syah Bangaan Abdullah, Hawati Janor, Mohamad Abdul Hamid, Puan Yatim,
spellingShingle	Mohd. Hafizuddin Syah Bangaan Abdullah, Hawati Janor, Mohamad Abdul Hamid, Puan Yatim, The effect of enterprise risk management on firm value: evidence from Malaysian technology firms
author_facet	Mohd. Hafizuddin Syah Bangaan Abdullah, Hawati Janor, Mohamad Abdul Hamid, Puan Yatim,
author_sort	Mohd. Hafizuddin Syah Bangaan Abdullah,
title	The effect of enterprise risk management on firm value: evidence from Malaysian technology firms
title_short	The effect of enterprise risk management on firm value: evidence from Malaysian technology firms
title_full	The effect of enterprise risk management on firm value: evidence from Malaysian technology firms
title_fullStr	The effect of enterprise risk management on firm value: evidence from Malaysian technology firms
title_full_unstemmed	The effect of enterprise risk management on firm value: evidence from Malaysian technology firms
title_sort	effect of enterprise risk management on firm value: evidence from malaysian technology firms
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2017
url	http://journalarticle.ukm.my/11299/ http://journalarticle.ukm.my/11299/ http://journalarticle.ukm.my/11299/1/12472-60317-1-PB.pdf
first_indexed	2023-09-18T19:59:56Z
last_indexed	2023-09-18T19:59:56Z
_version_	1777406780962242560

The effect of enterprise risk management on firm value: evidence from Malaysian technology firms

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