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

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  • Mazurina Mohd Ali
  • Nur Shazwani Ab Hamid
  • Erlane K Ghani

Abstract

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.

Suggested Citation

  • Mazurina Mohd Ali & Nur Shazwani Ab Hamid & Erlane K Ghani, 2019. "Examining the Relationship Between Enterprise Risk Management and Firm Performance in Malaysia," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(3), pages 239-251, May.
    • Handle: RePEc:jfr:ijfr11:v:10:y:2019:i:3:p:239-251
    DOI: 10.5430/ijfr.v10n3p239
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    References listed on IDEAS

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    Cited by:

    1. Lenka Syrová & Jindřich Špička, 2022. "The Impact of Foreign Capital on the Level of ERM Implementation in Czech SMEs," JRFM, MDPI, vol. 15(2), pages 1-17, February.
    2. Mohamed Santigie Kanu, 2022. "Risk Culture and Strategic Planning Roles on Enterprise Risk Management and Firm Performance in Selected African Countries," Business Management and Strategy, Macrothink Institute, vol. 13(1), pages 155-180, June.

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