The Determinants of Enterprise Risk Management: Evidence from the Appointment of Chief Risk Officers in Publicly-listed Financial Firms in Taiwan
碩士 === 銘傳大學 === 風險管理與保險學系碩士班 === 96 === Managing risk is an important aspect of running an organization. After the recent wave of corporate governance scandals, Enterprise Risk Management (ERM) has gained popularity over the last 15 years. Unlike the traditional risk management (TRM) where individua...
| Main Authors: | , |
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| Format: | Others |
| Language: | en_US |
| Published: |
2008
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| Online Access: | http://ndltd.ncl.edu.tw/handle/bhb2ka |
| Summary: | 碩士 === 銘傳大學 === 風險管理與保險學系碩士班 === 96 === Managing risk is an important aspect of running an organization. After the recent wave of corporate governance scandals, Enterprise Risk Management (ERM) has gained popularity over the last 15 years. Unlike the traditional risk management (TRM) where individual risk categories are separately managed in risk “silos,” ERM enables firms to manage a wide array of risks in an integrated, holistic fashion. The purpose of this study is to examine the variables which influence the current status of ERM and the publicly-listed financial firms’ determinants of ERM adoption in Taiwan. We construct a sample of firms that have signaled there use of ERM by appointing a Chief Risk Officer (CRO) who is charged of the responsibility of implementing and managing the ERM program. We use a logistic regression framework to compare these firms to a size- and industry-matched control sample. Our analysis shows an absence of systematic differences between sample and control firms. We find that lower leveraged firms are more inclined to appoint CROs. Besides, we also find that lower market-to-book ratio firms are more likely to appoint CROs in Taiwan.
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