Babcock University Research Portal

Corporate Risk Management and Firmsâ€™ Value: Empirical evidence from selected Listed Manufacturing

Authors: KWARBAI Jerry

Publication Type: Journal article

Journal:

ISSN Number:

Downloads

Views

Abstract

The paradigm shift from traditional risk management that is silos-based to Enterprise-wide risk management has elicited studies by scholars on the possible value creation capability of this new approach. But these studies, most of which have been conducted in the financial service sector, yielded mixed results. It is in the light if this ambiguity that this study examined the association between corporate risk management (CRM) and firms value (proxied by Tobins Q) the sample consisted of 10 manufacturing companies listed on the Nigerian stock exchange market as at December 31 2012. The study period is 11 years (2002-2012). Data on CRM and other determinant of firm value viz. firm size (SIZE), profitability (ROA), thin capitalization (TINCAP), and ownership concentration (OWNCON), were drawn from the published annual report and accounts of the sampled companies. Pearson correlation and OLS regression were employed in the analysis of data. Result indicated weak association between CRM and firm value. The effect of CRM on firm value is positive but insignificant. SIZE and ROA exerted significant positive effects on firm value while TINCAP and OWNCON exerted negative and insignificant effects on the firm value. The adjusted R2 values were not sufficiently strong in explaining the variation in firm value. The study concluded that the state of ERM appears to be relatively immature and that manufacturing companies in Nigeria are yet to embrace integrated risk management. The study recommended the adoption and incorporation of CRM as an integral part of Nigerian manufacturing companiesâ€™ corporate strategy.

Access to Documents

External Link
Download
Digital Object Identifier

Keywords

KWARBAI,J. . (0000). Corporate Risk Management and Firmsâ€™ Value: Empirical evidence from selected Listed Manufacturing , 0 (), 0-0.

KWARBAI,J. . "Corporate Risk Management and Firmsâ€™ Value: Empirical evidence from selected Listed Manufacturing " 0, no (), (0000): 0-0.

KWARBAI,J. and . (0000). Corporate Risk Management and Firmsâ€™ Value: Empirical evidence from selected Listed Manufacturing , 0 (), pp0-0.

KWARBAIJ, . Corporate Risk Management and Firmsâ€™ Value: Empirical evidence from selected Listed Manufacturing . 0000, 0 ():0-0.

KWARBAI,Jerry , . "Corporate Risk Management and Firmsâ€™ Value: Empirical evidence from selected Listed Manufacturing ", 0 . (0000) : 0-0.

K.Jerry , "Corporate Risk Management and Firmsâ€™ Value: Empirical evidence from selected Listed Manufacturing " vol.0, no., pp. 0-0, 0000.

Access to Documents

Keywords

About Us

Admissions

Contact Us

Policies

ALUMNI

STUDENT POPULATION