Abstract
Since the last few decades, the firms have shifted their focus towards risk management from
traditional risk management practices to enterprise risk management. For this purpose, the
current study is designed to investigate the critical firm's characteristics that influence firms
to adopt enterprise risk management practices. The data for this study comprises of 65
non-financial firms during the period 2009 to 2017. Binary Logistic and robust least square
method was administered to determine the relationship among variables. Empirical results
revealed that large firms, firms with a higher return on assets, and firms having more
independent directors on board leads towards the implementation of enterprise risk
management. The study also found a significant encouraging relationship between
implementing of this risk management and Tobin's Q both in the short and long run. The
implementation of an enterprise risk management system augments the performance of the
firm soon after the induction of this system as revealed by the results.
Wajid Khan, Muhammad Asif, Syed Qasim Shah. (2020) An Empirical Analysis of Enterprise Risk Management and Firm's Value: Evidence from Pakistan, Journal of Independent Studies and Research-Management, Social Sciences and Economics, Volume-18, Issue-1.
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