The Impact of Risk Management on Firm Performance

Azizah, Amiril; Diah, Ahyar Muhammad; Wulaningrum, Ratna

doi:10.2991/assehr.k.220301.139

Cited by 2 publications

(2 citation statements)

References 11 publications

(15 reference statements)

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“…In contrast, some studies claimed that more reported negative risk disclosures in the firm annual reports will affect its financial performance severely [1,9,87].…”

Section: Risk Disclosure Quality Cost Of Equity and Firm Performancementioning

confidence: 97%

Firm performance and cost of equity capital: the moderating role of narrative risk disclosure quality in Egypt

Ismail

Obiedallah

2022

Futur Bus J

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This paper aims to examine the moderating effect of the narrative risk disclosure quality on the association between firm performance and the cost of equity capital in the Egyptian setting. Manual content analysis and factorial principal component techniques are used to quantify the quality dimensions of the narrative risk disclosures. The weighted average cost of equity is used to estimate the firms’ costs of equity. A cross-sectional analysis was conducted over three years (2018–2020) for a sample of 73 non-financial firms listed on the Egyptian Stock Exchange (EGX100). Multiple OLS regression models are employed to test the hypotheses. The results reveal a negative association between firm performance and the cost of equity and, while such association strengthened when adding the narrative risk disclosure quality as a moderator variable. This suggests that risk disclosure is important to stockholders’ investment decision-making in the Egyptian context. Based on the dearth of literature related to the economic reverberations of narrative risk disclosure quality in emerging economies, this study contributes to the risk reporting literature by providing evidence on the moderating effect of the narrative risk disclosure quality and its reverberations on the firm’s cost of equity capital in one of the emerging economies as Egypt. With regard to the findings of this study, we expect to contribute to the practice and theory by providing new and different insights about the moderating effect of narrative risk disclosure on the association between firm performance and cost of equity capital.

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“…In contrast, some studies claimed that more reported negative risk disclosures in the firm annual reports will affect its financial performance severely [1,9,87].…”

Section: Risk Disclosure Quality Cost Of Equity and Firm Performancementioning

confidence: 97%

Firm performance and cost of equity capital: the moderating role of narrative risk disclosure quality in Egypt

Ismail

Obiedallah

2022

Futur Bus J

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“…Risk management is an essential topic for the business. Risk management is an indication of a company's openness, which will influence investors' decisions and improve business performance (Azizah, 2022). Good company value is one of the factors considered by investors, including those in the financial industry, when deciding to invest in a company.…”

Section: Risk Managementmentioning

confidence: 99%

Investigating Risk Management Toward Sustainable Performance: Evidence from Emerging Market

2024

MAR

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The Covid-19 turbulence challenges organizations to build sustainable performance. However, research linking risk management and sustainable performance has not been explored in the literature. The study examined how risk management helps firms handle this unexpected situation and maintain performance especially in Covid-19 turbulence. The study surveyed pandemic risk management-implementing enterprises across industries using multiple regression analysis. This study revealed that riskmanagement companies perform better, include proactive risk assessment, contingency planning, and financial and operational resilience. Further, risk management did not significantly affect company performance during Covid-19. The current study suggests that risk management may boost performance but not solve pandemic issues. Understanding the intricate relationship between risk management and crisis-related organizational performance requires more investigation.

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The Impact of Risk Management on Firm Performance

Cited by 2 publications

References 11 publications

Firm performance and cost of equity capital: the moderating role of narrative risk disclosure quality in Egypt

Firm performance and cost of equity capital: the moderating role of narrative risk disclosure quality in Egypt

Investigating Risk Management Toward Sustainable Performance: Evidence from Emerging Market

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