Does enterprise risk management influence market value – A long-term perspective (CROSBI ID 235932)
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Podaci o odgovornosti
Miloš Sprčić, Danijela ; Mešin Žagar, Marina ; Šević, Željko ; Marc, Mojca
engleski
Does enterprise risk management influence market value – A long-term perspective
This article explores if and how Enterprise Risk Management (ERM) influences market values of large US non-financial companies in the period from 2003 to 2012. This is the first empirical study that brings evidence on the effect of ERM on the value of non-financial companies and that explores not only the market reaction to the ERM announcement, but also the investors’ perception of long-term ERM usage. Our research shows evidence that ERM has a positive effect on the market value for a short period of time following the announcement of ERM implementation. After 2.67 years, the market premium for ERM companies fades away, so a company does not have a higher market value just because it has ERM. Our results indicate that ERM does not contribute to a company’s market value in the long term.
enterprise risk management, market value, non-financial companies, US market
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Podaci o izdanju
18 (2)
2016.
65-88
objavljeno
1460-3799
10.1057/rm.2016.3