본문 바로가기
KERD
논문KCI 등재

The Effects of Enterprise Risk Management on the Performance and Risk of Vietnamese Listed Firms: Evidence from Abnormal Enterprise Risk Management Index

Nguyen Thi Hoa Hong
사람과세계경영학회 (People&Global Business Association)|2023.10|Global Business and Finance Review|제28권 제5호|pp. 122-136|DOI 10.17549/gbfr.2023.28.5.122

1

조회

0

다운로드

6

인용

0

참고문헌

키워드

Vietnamfirm performancefirm riskAbnormal Enterprise Risk Management Index (ABERMI)Enterprise Risk Management (ERM)

초록

Purpose: This paper examines the effects of Enterprise Risk Management (ERM), as measured by the Abnormal Enterprise Risk Management Index (ABERMI), on the performance and risk of Vietnamese listed firms. Design/methodology/approach: The paper employs a combination of three regression methods (Pooled Ordinary Least Squares, Fixed Effect Model and Random Effect Model) to test the effects of Enterprise Risk Managment on the performance and risk of Vietnamese listed firms in the period of 2010-2020. In addition, a two-stage re-gression model is used to calculate the ABERMI. Findings: The findings show that firms with effective enterprise risk management (ERM), as evidenced by their low abnormal enterprise risk management index, can enhance their business performance measured by Tobin's Q. Furthermore, good ERM helps firms reduce the risk of bankruptcy. However, the research proves that ERM is not associated with return on total assets and systematic risk. Research limitations/implications: Firm can employ Enterprise Risk Management (ERM) to efficiently and effec-tively manage risk. Additionally, applying a standard might further enhance the quality of risk management efforts by managers. Authorities can encourage the implementation of ERM to safeguard investor's wealth and indirectly protect the Vietnamese economy. Originality/value: Through a comprehensive analysis of various methodologies, this paper aims to uncover positive outcomes in exploring the impact of Enterprise Risk Management (ERM) on both risk and performance within the setting of Vietnamese listed firm.

Abstract

Purpose: This paper examines the effects of Enterprise Risk Management (ERM), as measured by the Abnormal Enterprise Risk Management Index (ABERMI), on the performance and risk of Vietnamese listed firms. Design/methodology/approach: The paper employs a combination of three regression methods (Pooled Ordinary Least Squares, Fixed Effect Model and Random Effect Model) to test the effects of Enterprise Risk Managment on the performance and risk of Vietnamese listed firms in the period of 2010-2020. In addition, a two-stage re-gression model is used to calculate the ABERMI. Findings: The findings show that firms with effective enterprise risk management (ERM), as evidenced by their low abnormal enterprise risk management index, can enhance their business performance measured by Tobin's Q. Furthermore, good ERM helps firms reduce the risk of bankruptcy. However, the research proves that ERM is not associated with return on total assets and systematic risk. Research limitations/implications: Firm can employ Enterprise Risk Management (ERM) to efficiently and effec-tively manage risk. Additionally, applying a standard might further enhance the quality of risk management efforts by managers. Authorities can encourage the implementation of ERM to safeguard investor's wealth and indirectly protect the Vietnamese economy. Originality/value: Through a comprehensive analysis of various methodologies, this paper aims to uncover positive outcomes in exploring the impact of Enterprise Risk Management (ERM) on both risk and performance within the setting of Vietnamese listed firm.

참고문헌 (34)

  1. Altman, E. I., "Financial ratios, discriminant analysis and the prediction of corporate bankruptcy", The Journal of Finance, 23(4), pp.589~609 (1968)[DOI]
  2. Andersen, T. J., "The performance relationship of effective risk management : Exploring the firm-specific investment rationale", Long Range Planning, 41(2), pp.155~176 (2008)[DOI]
  3. Beasley, M., "Information Conveyed in Hiring Announcements of Senior Executives Overseeing Enterprise-Wide Risk Management Processes", Journal of Accounting, Auditing & Finance, 23(3), pp.311~332 (2008)[DOI]
  4. Jean Canil, "FINANCIAL RISK HEDGING, BORROWING AND CAPITAL EXPENDITURE", Global Business and Finance Review, 10(2), pp.59~69 (2005), 사람과세계경영학회
  5. Dickinson, G., "Enterprise Risk Management : Its Origin s and Conceptual Foundation", The Geneva Papers on Risk and Insurance, 26(3), pp.360~366 (2001)[DOI]
  6. Farrell, M., "The valuation implications of Enterprise risk", Journal of Risk and Insurance, 82(3), pp.625~657 (2015)[DOI]
  7. González, L. O., "The effect of Enterprise Risk Management on the risk and the performance of Spanish listed companies", European Research on Management and Business Economics, 26(3), pp.111~120 (2020)[DOI]
  8. Gordon, L. A., "Enterprise risk management and firm performance : A contingency perspective", Journal of Accounting and Public Policy, 28(4), pp.301~327 (2009)[DOI]
  9. Hoyt, R. E., "The Value of Enterprise Risk Management", Journal of Risk and Insurance, 78(4), pp.795~822 (2011)[DOI]
  10. Hoyt, R. E., "Evidence of the value of Enterprise risk management", Journal of Applied Corporate Finance, 27(1), pp.1~9 (2015)[DOI]
  11. Iswajuni, I., "The effect of enterprise risk management(ERM)on firm value in manufacturing companies listed on Indonesian Stock Exchange year 2010-2013", Asian Journal of Accounting Research, 3(2), pp.224~235 (2018)[DOI]
  12. Kraus, V., "The Nexus of Enterprise Risk Management and Value Creation: A systematic literature", Proceedings in Finance and Risk Perspectives '12 (2012), ACRN Cambridge Publishing House
  13. Kimbrough, R. L., "The Relationship Between Organizational Culture and Enterprise Risk Management", Engineering Management Journal, 21(2), pp.18~26 (2009)[DOI]
  14. Kommunuri, J., "Firm performance and value e ffects o f enterprise risk management", New Zealand Journal of Applied Business Research, 14(2), pp.17~28 (2016)
  16. McShane, M., "Enterprise risk management : history and a design science proposal", Journal of Risk Finance, 19(2), pp.137~153 (2018)[DOI]
  17. McShane, M. K., "Does Enterprise Risk Management Increase Firm Value? Journal of Accounting", Auditing & Finance, 26(4), pp.641~658 (2011)[DOI]
  18. Meulbroek, L., "The Promise and Challenge of Integrated Risk Management", Risk Management Insurance Review, 5(1), pp.55~66 (2002)[DOI]
  19. Modigliani, F., "The cost of capital, corporate finance and the theory of investment", The American Economic Review, 48(3), pp.261~297 (1958)
  20. Modigliani, F., "Corporate Income Taxes and the Cost of Capital : A Correction", The American Economic Review, 53(3), pp.433~443 (1963)
  21. Nguyen, T. A., "The Impact of Enterprise Risk Management and Sustainability Reporting on Business Performance of Listed Enterprises on Vietnam Stock Market", VNU Journal of Economics and Business, 1(4), pp.91~102 (2021)
  22. Nocco, B. W., "Enterprise risk management : Theory and practice", Journal of Applied Corporate Finance, 18(4), pp.8~20 (2006)[DOI]
  23. Phan, T., "The effect of enterprise risk management on firm value : Evidence from Vietnam industry listed enterprises", Accounting, 6(4), pp.473~480 (2020)[DOI]
  24. Globalization Report 2020: Who benefits the most from globalization?, "Sachs, A.", WITA, ~ (2020)
  25. Sharpe, W. F., "Capital Asset Prices : A theory of market equilibrium under conditions of risk", The Journal of Finance, 19(3), pp.425~442 (1964)[DOI]
  26. Stulz, R., "Rethinking risk management", Journal of Applied Corporate Finance, 9(3), pp.8~24 (1996)[DOI]
  27. Impact of the coronavirus pandemic on the global economy - Statistics & Facts, "Szmigiera, M.", Statista, ~ (2022)
  28. Tahir, I. M., "The relationship between Enterprise Risk Management(ERM)and firm value : Evidence from Malaysian public listed companies", International Journal of Economics and Management Sciences, 1(2), pp.32~41 (2011)
  29. "Enterprise risk management-integrated framework executive summary" (2004)[URL]
  30. Phung Thai Minh Trang, "Personality Traits, Perceived Risk, Uncertainty, and Investment Performance in Vietnam", Global Business and Finance Review, 22(1), pp.67~79 (2017), 사람과세계경영학회[DOI]
  31. Wang, T-S., "The relationship between external financing activities and earnings management : Evidence from enterprise risk management", International Review of Economics & Finance, 58, pp.312~329 (2018)[DOI]
  32. Daphne Wang, "Idiosyncratic Risks, Bailout, and Financial Crisis: A Copula Approach", Global Business and Finance Review, 20(1), pp.53~70 (2015), 사람과세계경영학회[DOI]
  33. Xiaolou Yang, "Governance, CEOs’’ Compensation, and Risk Management", Global Business and Finance Review, 17(1), pp.21~37 (2012), 사람과세계경영학회
  34. 임상균, "Individual Blockholders and Corporate Risk-Taking: Korean Evidence", Global Business and Finance Review, 26(4), pp.49~64 (2021), 사람과세계경영학회[DOI]

관련 논문AI추천

The Impact of Corporate Governance on Companies' Risk-taking: Evidence from Listed Companies in VietnamAnh Thi Yen Vu, Mai Chi Trinh, Tam Van Nguyen, Thuy Thi Bich Ta사람과세계경영학회 · Global Business and Finance Review2025 · 제30권 제7호Corporate Governance and Bank Performance: Empirical Evidence from Vietnamese Listed Banks도송황, 이재우한국경제통상학회 · 경제연구2020 · 제38권 제1호Accruals Quality, Stock Returns and Information Risk: Evidence from VietnamMAI NGUYEN, THI NGOC LAN NGUYEN, VIET DZUNG NGUYEN, XUAN VINH VO경제연구소 · Journal of Economic Development2024 · 제49권 제2호Factors Affecting Business Performance of Non-life Insurance Companies:Empirical Evidence from VietnamHai Anh Le, Thanh Thu Tran, Thi Thanh Nguyen사람과세계경영학회 · Global Business and Finance Review2025 · 제30권 제12호Does Board Size Affect Financial Distress Equally? Evidence from Vietnam's Construction and Food Manufacturing IndustriesManh Ha Tran, Ngoc Mai Tran사람과세계경영학회 · Global Business and Finance Review2025 · 제30권 제10호Stewardship Theory and Information on Family Firm Performance in VietnamDAO Thi Thanh Binh, HOANG Linh Chi한국유통과학회 · 유통과학연구2022 · 제20권 제12호

이 간행물의 다른 논문 (9건)

An Analysis of Key Attributes of Upcycled Food using a Best-Worst Scaling ApproachYu Jung Jennifer Jeonpp. 1-12A Robotic Concepts: Study of Perceived Brand Reputation and Customers' Perceived Performance in a RestaurantRasidah Hamid, Fazrul Reza Mohd Fadzil, Mohd Hanafi Azman Ong, Abdul Aziz Azdelpp. 13-30The Nexus between Executive Compensation and Firm Performance: Does Governance and Inequality Matter?Godfrey Marozva, Tapiwa Muzatapp. 31-50Effects of Working Capital Management on Small and Medium-sized Enterprises' Profitability from the Continuity of Supply Chain Relationships오건택, 정의범, 유한나pp. 51-66Impact of Accounting Conservatism on the Informativeness of Current Stock Prices for Future EarningsJunyong Shim, 김응길pp. 67-81
원문 보기