Developing Enterprise Risk Management Index for Shariah-Compliant Companies
Numerous firms are implementing enterprise risk management (ERM) because it can increase firm value. However, academic research examining the association between ERM and firm value remains limited due to the lack of suitable and comprehensive dimensions available for measuring ERM. This study direct...
Main Authors: | , , , |
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Format: | Article |
Language: | English |
Published: |
Kolej University Islam Sultan Azlan Shah
2018
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Subjects: | |
Online Access: | View Fulltext in Publisher View in Scopus |
LEADER | 02237nam a2200241Ia 4500 | ||
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001 | 10.7187-GJATSI2018-13 | ||
008 | 220120s2018 CNT 000 0 und d | ||
020 | |a 22320474 (ISSN) | ||
245 | 1 | 0 | |a Developing Enterprise Risk Management Index for Shariah-Compliant Companies |
260 | 0 | |b Kolej University Islam Sultan Azlan Shah |c 2018 | |
490 | 1 | |t Global Journal Al-Thaqafah | |
650 | 0 | 4 | |a Enterprise risk management |
650 | 0 | 4 | |a Firm value |
650 | 0 | 4 | |a Partial least square |
650 | 0 | 4 | |a Structural equation modeling |
856 | |z View Fulltext in Publisher |u https://doi.org/10.7187/GJATSI2018-13 | ||
856 | |z View in Scopus |u https://www.scopus.com/inward/record.uri?eid=2-s2.0-85096612156&doi=10.7187%2fGJATSI2018-13&partnerID=40&md5=19b37f9885bec04af083943ed7225b0f | ||
520 | 3 | |a Numerous firms are implementing enterprise risk management (ERM) because it can increase firm value. However, academic research examining the association between ERM and firm value remains limited due to the lack of suitable and comprehensive dimensions available for measuring ERM. This study directly addresses this research gap and proposes a comprehensive dimension of ERM that effectively measures the construct. ERM Index (ERMi) is proposed as an effective measurement for ERM implementation. ERMi was constructed on the basis of data gathered from a thorough review of literature. The effectiveness of ERMi in measuring ERM implementation was assessed through survey questionnaire among Shariah-compliant companies listed in Bursa Malaysia, and tested using the structural equation modeling technique of partial least squares (PLS-SEM). Empirical findings confirm that 42 items in ERMi that measure the eight principal components of ERM are significant and effective dimensions for ERM implementation. Empirical premise of ERMi, such as its reliability and validity assessed using PLS-SEM, is another important contribution of this study attesting that PLS-SEM is an efficient data analysis technique that can be employed in accounting research. © 2018. All Rights Reserved. | |
700 | 1 | 0 | |a Atan, R. |e author |
700 | 1 | 0 | |a Maruhun, E.N.S. |e author |
700 | 1 | 0 | |a Said, J. |e author |
700 | 1 | 0 | |a Yusuf, S.N.S. |e author |
773 | |t Global Journal Al-Thaqafah |