Enterprise Risk Management and firm performance: an integrated model for the banking sector

  • Received February 16, 2017;
    Accepted May 31, 2017;
    Published July 21, 2017
  • Author(s)
  • DOI
  • Article Info
    Volume 12 2017, Issue #2, pp. 116-123

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

This study investigates how the implementation of Enterprise Risk Management program affects the performance of firms using an Enterprise Risk Management model for the banking sector and an integrated model for measuring Enterprise Risk Management index used in the study by Mukhtar and Soliman (2016). Ten listed commercial banks were selected with the Enterprise Risk Management index as the main independent variable, with Return on Average Equity (ROAE), Share Price Return (SPR) and Firm Value (FV) used as three separate dependent variables. The study provides strong evidence of a positive relationship between Enterprise Risk Management implementation and performance in the Nigerian banking sector. The findings and conclusions of this study are consistent with those of other studies that used data from different industries, providing a basis from which to generalize the findings from this study to firms in other industries.

view full abstract hide full abstract
    • Fig. 1. ERM model for the banking sector
    • Table 1. Summary of results of residual diagnostic test for regression model 1
    • Table 2. OLS - regression model 1
    • Table 3. Diagnostic tests for regression model 2
    • Table 4. OLS - regression model 2
    • Table 5. Summary of results of residual diagnostic test for regression model 3
    • Table 6. Summary of results of Ordinary Least Square Regression - regression model 3