Macroeconomics

Linguistics

Philosophy

Microeconomics

Chromatography

Accounting

Economics

Enterprise value

Computer science

Empirical evidence

Business

Economic Value Added

Enterprise risk management

Value (mathematics)

Epistemology

Leverage (statistics)

Risk management

Chemistry

Sample (material)

Finance

Financial crisis

Market value added

Machine learning

Profit (economics)

Romanian

Engineering Economics

Enterprise risk management (ERM) represents a significant change in the way firms manage risks. In the last years an increasing number of non-financial firms from emerging economies started to implement a holistic framework for risk management. The aim of the paper is to investigate the effects of ERM implementation on the firm value in different economic environments. Using a sample of Romanian listed firms for the pre-crisis period (2001-2007), we found that ERM adoption is associated with higher firm values, indicated by a Tobin's Q premium of roughly 46.5%. We also found a positive and statistically significant relationship between size, leverage, on one hand, and firm value, on the other hand. Extending our sample over the financial crisis period (2001-2011), we found that ERM does not affect firm value in any significant manner. Our results lend support for the recent pressure on firms to adopt more integrated and comprehensive risk management systems.DOI: http://dx.doi.org/10.5755/j01.ee.29.2.16426

The Impact of Enterprise Risk Management on Firm Value: Empirical Evidence from Romanian Non-financial Firms