Author

  • Ahmad Rizal Razali

    • Faculty of Business Management and Accountancy, University Sultan Zainal Abidin (UniSZA), Malaysia
    • Malaysia

  • Ahmad Shukri Yazid

    • Faculty of Business Management and Accountancy, University Sultan Zainal Abidin (UniSZA), Malaysia
    • Malaysia

  • Izah Mohd Tahir

    • Faculty of Business Management and Accountancy, University Sultan Zainal Abidin (UniSZA), Malaysia
    • Malaysia

Abstract

The objective of this study is to examine the determinants of Enterprise Risk Management (ERM) adoption in Malaysian Public Listed Companies (PLCs). The study focuses on ten industries from five hundred and seventy four Public Listed Companies in Malaysia for the period 2007. These ten industries include industrial products, trading/services, consumer products, properties, constructions, plantations, infrastructure projects, technology, hotels and mining. Logit regression approach will be employed, and a dummy variable equals one if companies adopt ERM and zero otherwise, is used as the dependent variable. Seven independent variables used are Size, Leverage, Profitability, International Diversification, Ownership, Chief Risk Officer and Turnover. The main results of this research is that companies with high turnover, hiring Chief Risk Officer and companies that are not diversified internationally are more likely to adopt ERM. Interestingly, Size, Leverage, Profitability, and Ownership are not significant determinants of ERM practices.

Keywords

References

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How to Cite

Razali, A. R., Yazid, A. S., & Mohd Tahir, I. (2011). The Determinants of Enterprise Risk Management (ERM) Practices in Malaysian Public Listed Companies. Journal of Social and Development Sciences, 1(5), 202-207. https://doi.org/10.22610/jsds.v1i5.645

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Copyright (c) 2011 Ahmad Rizal Razali, Ahmad Shukri Yazid, Izah Mohd Tahir (Author)

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Research Paper

Published in

Vol. 1 No. 5 (2011) Labour, Identity & Contract Economies View issue contents

Published

2011-06-15

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