Enterprise Risk Management Adoption And Significant Positive Impact On Company Value. Case Study Of Sic Insurance Company Ghana ( Inferential Statistics And Hypothesis Testing).
Journal of Research in Business, Economics and Management
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Title |
Enterprise Risk Management Adoption And Significant Positive Impact On Company Value. Case Study Of Sic Insurance Company Ghana ( Inferential Statistics And Hypothesis Testing).
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Creator |
Sarpong, Linda Addie
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Description |
Abstract This paper begins with academic empirical findings on current state of maturity with ERM (Enterprise Risk Management) as evidenced by research survey at SIC Company Ghana. The study of ERM (Enterprise Risk Management) took a qualitative research strategic approach, the study analysis of non-numerical qualitative data is expressed through words that is used to find answers to the stated hypothesis , which is applicable to this study. The research data collected was based on a single case study considering that the annual reports only indicated whether the company used COSO’s framework and ERM practices, a further investigation had to be made to ensure the suitability of the potential case company. State Insurance Corporation (SIC) Ghana was contacted considering that the company seemed to be using the COSO framework as well as having a strategic thinking regarding risk. The aim of the study was to investigate the usage of ERM (which should permeate the organization. To answer the research question some hypotheses have been formulated. These hypotheses are derived from findings of earlier research and literature. It is reasonable that firms with an ERM system may decide to increase leverage as a result of their improved risk appreciation . Another industrial sector with stronger ERM requirements due to regulatory restrictions, e.g. as a consequence of the downfall of Enron, is the energy industry. On the other hand, firms with a higher number of operating segments are faced with a higher risk complexity and therefore an increasing willingness to implement ERM. To answer H1 to H5, an analysis of the ERM implementation level needs to be performed. Second, the ERM implementation levels and performance of the insurance company needs to be coupled and compared to the other insurance companies in the sample. There are two research objectives which will be focused on 1) The grounded theory method which uses two basic principles: (a) questioning rather than measuring, and (b) generating hypotheses using theoretical coding and 2) the value impact of ERM systems, different empirical methods along with different time periods (a one-year and a multi-period sample), thereby following the literature. The hypothesize that the following firm characteristics have an impact on the likelihood of an ERM implementation. Keywords Hypothesis,Risk,Method,Ghana,Insurance
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Publisher |
Scitech Research Organisation
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Date |
2018-11-04
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
http://scitecresearch.com/journals/index.php/jrbem/article/view/1619
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Source |
Journal of Research in Business, Economics and Management; Vol 11 No 5: JRBEM; 2221-2229
2395-2210 |
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Language |
eng
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Relation |
http://scitecresearch.com/journals/index.php/jrbem/article/view/1619/1161
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Rights |
Copyright (c) 2018 Journal of Research in Business, Economics and Management
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