Determinants behind adopting ERM : a case of Egypt
Other Title(s)
محددات تطبيق برامج إدارة الخطر في منشآت الأعمال : حالة جمهورية مصر العربية
Author
Source
Association of Arab Universities Journal of Accounting and Auditing
Issue
Vol. 11, Issue 1 (30 Apr. 2022), pp.78-115, 38 p.
Publisher
Beni-Suef University Faculty of Commerce Department of Accounting
Publication Date
2022-04-30
Country of Publication
Egypt
No. of Pages
38
Main Subjects
Topics
Abstract EN
The main aim of this study is to investigate, and perform an empirical inquiry of, factors that impact a company's choice to adopt an Enterprise Risk Management (ERM) system in Egypt.
The current paper focuses on a sample of 86 top corporations listed on the “Egyptian Stock Exchange”.
A logistic regression model is created to test the hypotheses.
Results suggest that size (Ln market capitalization), profitability (ROA), liquidity (current ratio), corporate governance (being listed on S&P/EGX ESG index) and belonging to some industry sector are possible positive drivers for ERM adoption.
Nevertheless, leverage (debt to equity ratio) has a negative relationship to ERM engagement while growth (growth in book value of equity) has no effect on the implementation of ERM by the sampled companies.
Contrary to prior literature, the current study revealed a positive impact of liquidity and profitability on the corporation's decision to apply an ERM system.
Originality of the current paper lies in the following.
It adds to the empirical literature on drivers of ERM deployment.
In addition, these reasons are examined in a new context; Egypt, which is not presented in the prior literature.
Moreover, in contrast with prior literature, Corporate Governance is proxied by a comprehensive measure, namely, being listed on S&P/EGX ESG index, which covers environmental awareness, social responsibility, and other corporate governance practices.
American Psychological Association (APA)
Hanafi, Rasha S.. 2022. Determinants behind adopting ERM : a case of Egypt. Association of Arab Universities Journal of Accounting and Auditing،Vol. 11, no. 1, pp.78-115.
https://search.emarefa.net/detail/BIM-1394634
Modern Language Association (MLA)
Hanafi, Rasha S.. Determinants behind adopting ERM : a case of Egypt. Association of Arab Universities Journal of Accounting and Auditing Vol. 11, no. 1 (2022), pp.78-115.
https://search.emarefa.net/detail/BIM-1394634
American Medical Association (AMA)
Hanafi, Rasha S.. Determinants behind adopting ERM : a case of Egypt. Association of Arab Universities Journal of Accounting and Auditing. 2022. Vol. 11, no. 1, pp.78-115.
https://search.emarefa.net/detail/BIM-1394634
Data Type
Journal Articles
Language
English
Notes
-
Record ID
BIM-1394634