Moderating Effect of Enterprise Risk Management on the Relationship Between Board Structures and Corporate Performance

2019 ◽  
Author(s):  
Saddam Shatnawi ◽  
Mustafa Hanefah ◽  
Monther Eldaia
Keyword(s):  
Risk Management ◽  
Corporate Performance ◽  
Enterprise Risk Management ◽  
Moderating Effect ◽  
Enterprise Risk ◽  
The Relationship

scholarly journals MODERATING EFFECT OF ENTERPRISE RISK MANAGEMENT ON THE RELATIONSHIP BETWEEN BOARD STRUCTURES AND CORPORATE PERFORMANCE

2019 ◽  
pp. 01-15
Author(s):  
Saddam Ali Shatnawi ◽  
Mustafa Mohd Hanefah ◽  
Monther Yahiya Sobhi Eldaia
Keyword(s):  
Risk Management ◽  
Firm Performance ◽  
Corporate Performance ◽  
Continuous Process ◽  
Enterprise Risk Management ◽  
Board Independence ◽  
Board Size ◽  
Enterprise Risk ◽  
Director Ownership ◽  
The Relationship

Risk encroachment into Corporate Governance (CG) remains a continuous process that required an efficient and long-term solution. Using enterprise risk management (ERM) as a moderating variable on the relationship between board structures and corporate performance remains an area unexploited in CG research. This relationship can effectively measure by the extent of ERM interactions between board structures and corporate performance. Despite various studies on CG mechanisms, firm performance, ERM implementation level, and gender diversity, the empirical results appeared inconclusive and the findings are inconsistent. None of the studies have addressed the role play by ERM as a moderator between director ownership, the board size, board independence, the total number of women on the board, number of Muslim directors on the board, and firm performance. It is demonstrated that the ERM has the potential to moderate between the different board structures and corporate performance, and this moderation has never been reported in the literature. It is expected that this ERM moderation may considerably improve corporate performance by determining the strength or weakness of the relationship between board structures and firm performance. Thus, this paper, with regards to available literature, conceptualized that ‘ERM’ moderates the relationship between Board Size, Board Independence, Director Ownership, Total Women in the Board, Muslim directors on the Board, and corporate performance.

scholarly journals The Moderating Effect of Innovation on the Relationship between Enterprise Risk Management Strategies and Performance of Christian Hospitality Sectorin Kenya – An Empirical Overview

2017 ◽  
Vol 12 (12) ◽  
pp. 212
Author(s):  
Midikira Churchill Kibisu ◽  
Zachary B. Awino
Keyword(s):  
Risk Management ◽  
Management Strategies ◽  
Enterprise Risk Management ◽  
Moderating Effect ◽  
P Value ◽  
Enterprise Risk ◽  
Risk Management Strategies ◽  
And Performance ◽  
The Relationship ◽  
Christian Hospitality

This study intended to determine the moderating effect of Innovation on the relationship between Enterprise risk Management Strategies (ERMS) and performance. The context of the study was the Christian-based hospitality businesses in Kenya. Indicators of performance were both financial and non-financial and data was sought both from primary and secondary sources. The Null hypothesis was formulated for testing the relationship using a significance p-value of p<0.05. The study adopted a positivistic philosophy using descriptive cross-sectional survey design on a population of 76 Christian-based hospitality businesses in Kenya which are unlisted. A 65.8 % response rate was achieved. This concludes that innovationsadopted by Christian Hospitality Sector in Kenya have a significant moderating effect on the relationship between enterprise risk managementstrategies and performance. The results implies that for the Christian-Based Hospitality Businesses in Kenya to improve performance effective enterprise risk management strategies must combine with effective innovative practices in order to perform well.

scholarly journals Examining the Relationship Between Enterprise Risk Management and Firm Performance in Malaysia

2019 ◽  
Vol 10 (3) ◽  
pp. 239
Author(s):  
Mazurina Mohd Ali ◽  
Nur Shazwani Ab Hamid ◽  
Erlane K Ghani
Keyword(s):  
Risk Management ◽  
Firm Performance ◽  
Enterprise Risk Management ◽  
Audit Firm ◽  
Listed Firms ◽  
Significant Coefficient ◽  
Enterprise Risk ◽  
Before And After ◽  
The Mean ◽  
The Relationship

This study aims to examine the relationship between enterprise risk management (ERM) implementation and firm performance in Malaysia. Using the sample from 2010 to 2016, this study examines the relationship between ERM and firm performance among Malaysian top 100 public listed firms registered on the Index FTSE Bursa Malaysia 100 (FBM100) KLSE. This study also provides comparisons before and after the introduction of Bursa Malaysia Guidelines 2013. This study shows a positive and significant coefficient between profitability and firm performance towards ERM implementation. However, this study shows insignificant relationship between firm size, financial leverage and audit firm with firm performance. This study also shows that there is an increase in the mean score and standard deviation of these variables after the implementation of Bursa Malaysia Guideline 2013. The findings in this study provides an understanding to the Malaysian public listed firms on the importance of ERM and subsequently, maximise the benefits of ERM especially after the introduction of Bursa Malaysia Guidelines 2013 for the benefits of their stakeholders and regulatory improvement in future.

scholarly journals Ownership, board, and enterprise risk management

2020 ◽  
Vol 10 (1) ◽  
pp. 44-55
Author(s):  
Luís Otero González ◽  
Luís Otero González ◽  
Luis-Ignacio Rodriguez Gil ◽  
Pablo Durán Santomil ◽  
Pablo Durán Santomil ◽  
...  
Keyword(s):  
Risk Management ◽  
Board Of Directors ◽  
Linear Structure ◽  
Enterprise Risk Management ◽  
Stock Exchanges ◽  
Family Ownership ◽  
Enterprise Risk ◽  
The Board Of Directors ◽  
Implementation Level ◽  
The Relationship

This paper analyses the effect of family ownership and the characteristics of the board of directors on the implementation level of enterprise risk management (ERM) in Spanish non-financial companies. The sample consists of 162 Spanish non-financial companies listed on Spanish stock exchanges and markets during 2012–2015. The results obtained show that the relationship between the level of family ownership concentration and the implementation level of an ERM system has a non-linear structure. Therefore, a reduction in implementation for moderate ownership levels is observed, although this increases with high ownership values. Regarding corporate governance, our study confirms the importance of certain characteristics of the board of directors, such as the size and the figure of the shareholder director in the implementation of formal ERM systems.

The Intervening Effect of Corporate Strategy on the Relationship between Transformational Leadership and Enterprise Risk Management Adoption by Commercial State Corporations in Kenya

2022 ◽  
Vol 6 (1) ◽  
pp. 26-42
Author(s):  
Disterius Ondieki Nyandika ◽  
◽  
Paul Machoka ◽  
Michael Ngala ◽  
◽  
...  
Keyword(s):  
Risk Management ◽  
Transformational Leadership ◽  
Corporate Strategy ◽  
Strategic Plan ◽  
Business Environment ◽  
Enterprise Risk Management ◽  
Mediation Effect ◽  
Primary Data ◽  
Enterprise Risk ◽  
The Relationship

In today’s dynamic and competitive business environment, organizations are adopting the enterprise risk management framework to address the inadequacies in risk management in entities. Operating in today’s dynamic and competitive business environment organizations are faced with ever evolving risks as they implement their strategic objectives in order to create value. This study examined the intervening effect of corporate strategy on the relationship between transformational leadership and enterprise risk management adoption. This research adopted a positivist research philosophy and cross-sectional survey design approach. The target population comprised all the Commercial State Corporations in Kenya listed in the register of State Corporations Advisory Committee (SCAC) as at January 2021. The unit of analysis was the 52 Commercial State Corporations and unit of observation was top management of each entity. The study used primary data which was collected through structured questionnaires. The Statistical Package for Social Sciences (SPSS version 22) was used in regression modeling for prediction and causal inferences between study variables. The study findings indicated a partial mediation effect on the mediating role of corporate strategy on the relationship between transformational leadership and ERM adoption. The objective was achieved. The study recommends that the commercial state corporations should anchor the ERM adoption activities and other management programmes in the corporate strategic plan for effective execution. In addition, the corporate strategic plan should be cascaded to stakeholders to enhance ownership and design policy to ensure the implementation of the corporate strategic plan is effectively monitored. Keywords: Corporate Strategy, Transformational Leadership, Enterprise Risk Management & Commercial State Corporations

The Relationship between Transformational Leadership and Enterprise Risk Management Adoption by Commercial State Corporations in Kenya

2022 ◽  
Vol 6 (1) ◽  
pp. 14-30
Author(s):  
Disterius Ondieki Nyandika ◽  
◽  
Paul Machoka ◽  
Michael Ngala ◽  
◽  
...  
Keyword(s):  
Risk Management ◽  
Transformational Leadership ◽  
Enterprise Risk Management ◽  
Primary Data ◽  
Top Management ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Enterprise Risk ◽  
Mandatory Requirement ◽  
The Relationship

The adoption of Enterprise Risk Management (ERM) by State Corporations in Kenya is a mandatory requirement and yet, the information on levels of adoption amongst Commercial State Corporations, most of which continue to experience poor performance due to weak governance is scanty. The objective of the study was to establish the relationship between transformational leadership and enterprise risk management adoption. This study adopted a positivist research philosophy and cross-sectional survey design approach. The target population comprised all the Commercial State Corporations in Kenya listed in the register of State Corporations Advisory Committee (SCAC) as at January 2021. The unit of analysis was the 52 Commercial State Corporations and unit of observation was top management of each entity. The researcher applied purposive sampling to select top management and surveyed the total population of top management that derived a sample size of 364 participants. The study used primary data which was collected through structured questionnaires. The descriptive and inferential statistics was employed in the analysis. The Statistical Package for Social Sciences (SPSS version 22) was used in regression modeling for prediction and causal inferences between study variables. The study findings indicated that Transformational Leadership has a significant relationship with ERM adoption. The study recommends that commercial state corporations embrace transformational leadership in order to enhance ERM adoption. Keywords: Transformational Leadership, Enterprise Risk Management & Commercial State Corporations

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