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

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.

Ownership Structure And Risk Management Moderated By Audit Committee On Firm Performance

“…This will influence decision making which will have an impact on firm performance. Each decision has a different level of risk, so management needs to consider decisions that have the least risk (Alkhyyoon et al, 2023a).…”

“…This research is a combination of the results of previous research conducted previously by (Al-Ahdal et al, 2023a) by adopting the Ownership Structure variable as an independent variable, Firm Performance was chosen to be used as the dependent variable, and Audit Committee as a moderating variable. The novelty examined in this research is adding enterprise risk management variables from research conducted by (Alkhyyoon et al, 2023a), this is important to research because it is a monitoring function in maximizing firm performance.…”

Assessing the Maturity Level of Risk Management in IT Projects

“…It should be noted that the development of project management maturity models stimulate the creation of a maturity model in terms of risk management, which, with increasing maturity, can eliminate the most dangerous risks [20,21]. Many researchers have noted that the increasing level of risk management maturity also determines the real economic benefits from risk management processes use, creates road maps for the development of organizations and conducts competitive analysis [22][23][24][25][26].…”