The Combined Effect of Enterprise Risk Management and Diversification on Property and Casualty Insurer Performance

Ai, Jing; Bajtelsmit, Vickie L.; Wang, Tianyang

doi:10.1111/jori.12166

Cited by 50 publications

(39 citation statements)

References 67 publications

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“…For example, findings by Malik et al (2020) Saeidi et al (2019 indicated a positive and significant relationship between ERM and firm performance. This result replicated the finding of other studies such as Saeidi et al (2019), Lechner and Gatzert (2018), Chen et al (2019), Hanggraeni et al (2019), Ai et al (2018), Eckles et al (2014), Teoh et al (2017), Ping and Muthuveloo (2015), Jalal-Karim (2013), Farrell and Gallagher (2015), Bertinetti et al (2013), and Floria and Leoni (2017). Moreover, Manab et al (2010) and Gates et al (2012) indicated that ERM could indirectly affect firm performance through increasing the capability and ability of the managers of organizations.…”

Section: Enterprise Risk Management and Firm Performancesupporting

confidence: 90%

“…involved in ERM compare to other sectors (Nguyen & Vo, 2020;Saeidi et al, 2019). According to Saeidi et al (2019), Ai et al (2018), and Nguyen and Vo (2020), financial institutions were among the first organizations implementing ERM. Several studies have documented the crucial role of financial institutions in the economic development of countries (Chen et al, 2019;Khafagy, 2019).…”

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confidence: 99%

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The influence of enterprise risk management on firm performance with the moderating effect of intellectual capital dimensions

Saeidi

Gutierrez

et al. 2020

Economic Research-Ekonomska Istraživanja

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In the current dynamic environment, organizations are exposed to many risks from different directions. Therefore, this study using the theoretical lens explored the effect of enterprise risk management (ERM) on both financial and non-financial firm performance and the moderating role of intellectual capital (IC) and its dimensions on the relationship between ERM and firm performance. To test the study hypotheses, a questionnaire survey was distributed to 84 Iranian financial institutions. Structural equation modeling (PLS software) was used to analyze the data statistically. The findings revealed that ERM had a positive relationship with firms' performance. The results also showed that the overall IC had a moderating effect on ERM-firm financial performance. However, regarding components of IC, knowledge, and information technology (IT) had a positive and significant moderating effect while training, organizational culture, and trust did not affect. This study provides an insight into the impact of ERM in recent years on non-financial performance and the influence of intangible assets on ERM and its function. The model developed in the current study and result can be extended and implemented to other organizations in developing countries.

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Section: Enterprise Risk Management and Firm Performancesupporting

confidence: 90%

mentioning

confidence: 99%

The influence of enterprise risk management on firm performance with the moderating effect of intellectual capital dimensions

Saeidi

Gutierrez

et al. 2020

Economic Research-Ekonomska Istraživanja

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“…2 A method frequently used to analyse the impact of ERM on valuation is the Tobin's Q ratio (Lechner and Gatzert, 2018;Farrell and Gallagher, 2015;Grace et al, 2015;Hoyt and Liebenberg, 2011). Bohnert et al (2019) confirms high-quality risk management programs lead to increasing the shareholder value of firms which is in line with previous studies (i.e., Liebenberg, 2006, 2011;Baxter et al, 2013;Farrell and Gallagher, 2015;Ai et al, 2016;Lechner and Gatzert, 2018). Baxter et al (2013) additionally calculate the abnormal returns around the announcement of ERM quality ratings.…”

Section: Overview Of International Enterprise Risk Management Researchmentioning

confidence: 52%

Regulation of enterprise risk management: a comparative analysis of Australia, Germany and the USA

Bledow

Sassen

Wei

2019

IJCM

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Enterprise risk management (ERM) has become a ubiquitous strategy, especially among international corporate governance regulations. This paper aims to examine the level of risk management regulation through an international comparison approach. Specifically, from a corporate governance perspective, we investigate the Australian risk management regulations and compare it to the regulations of the USA and Germany. We find clear differences in each country's approach, with the USA having the highest level of regulation, followed by Australia and finally Germany. This implies that the level of regulation depends on country-specific characteristics and that the strict regulations of the SOX have led to a high level of regulation. From a management perspective, it seems to be recommendable to harmonise the respective international regulations in order to provide multinational corporations with similar requirements across different countries. Accordingly, this paper proposes multilateral collaboration in harmonizing international ERM regulations in order to avoid that firms take unnecessary risks. As a consequence, this harmonization stabilizes in turn the global financial system.

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“…Risk cultures (RC) plays a substantial role in influencing the collective attitudes of the personal towards the success of ERM within a firm (Aris & Jalil, 2016). It is relevant to the organizational success (Ai et al, 2018). Managers and corporate executives should carefully study the RC Agreement to understand and study dynamics of ERM practices (Arena et al, 2010;Ring et al, 2016;Wood & Lewis, 2018).…”

Section: Risk Cultures Within the Firmsmentioning

confidence: 99%

The Factors Influencing The Enterprise Risk Management Practices and Firm Performance in Jordan and Malaysia

Shatnawi

Eldaia

2020

IJRTE

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Future of uncertainty and risks in firm businesses and country-based economics remains continuous processes that need to be managed effectively and efficiently. Risks taking is a routine activity in all firms. Enterprise Risk Management (ERM) has now become an ultimate concern and a robust risk management approach in all financial and non-financial industries and other sectors throughout the globe. Firms are adopting ERM as a holistic strategy by putting its core components in practice to effectively manage all risks to protect the organizations and stakeholder value. The process of putting ERM into practice is only effective and efficient through identifying the factors that influence its practice in order to improve the firm performance. As a result of this reason, various factors influencing ERM were examined by different investigators as an indirect factor or as a parameter. However, only a few scholars studied it as a major factor or main objective, despite the risks remain a major issue influencing the goals of enterprises in all firm types in both Jordan and Malaysia. In order to fully consolidate the influencing factors on ERM practices, a comparative review of the available literature in Jordan and Malaysia were carried out to excavate the key influencing factors for direct identification in order to improve the firm performance. The factors identified were categorized into three groups; the management-based, firm-based, and ERMperformance-measurement-based factors. Each group of factors was found to influence the success of ERM strategies and practices in both Jordan and Malaysia. Jordan (Middle-East) and Malaysia (South-East Asia) shared a common characteristic of ERM adoptions and practices with regard to firm composition and risk management. Both countries are now pacing up to meet up with ERM practice challenges. Although, ERM still is a relatively new concept in several parts of Middle-East and SouthEast Asia. Though, Malaysia proved to have more improved and established ERM success factors and researches as compared to Jordan. Additionally, Malaysia was found to have more appeared ERM terms in the Board of Bursa Malaysia (BBM) Guidelines as well as ERM practices under different sectors from 2008 to 2018 compared to Jordanian Amman Stock Exchange (ASE). Thus, it appears that Malaysia has more robust ERM research works, adoptions, practices, and compliance system in place compared to what is obtainable in Jordan. In conclusion, firm managers in Jordan and Malaysia are highly recommended to use these ERM factors identified as strategic and to improve ERM practices in their organizations

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The Combined Effect of Enterprise Risk Management and Diversification on Property and Casualty Insurer Performance

Cited by 50 publications

References 67 publications

The influence of enterprise risk management on firm performance with the moderating effect of intellectual capital dimensions

The influence of enterprise risk management on firm performance with the moderating effect of intellectual capital dimensions

Regulation of enterprise risk management: a comparative analysis of Australia, Germany and the USA

The Factors Influencing The Enterprise Risk Management Practices and Firm Performance in Jordan and Malaysia

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