RT Journal Article
T1 The effect of Enterprise Risk Management on the risk and the performance of Spanish listed companies
A1 Otero González, Luis
A1 Durán Santomil, Pablo
A1 Tamayo Herrera, Aracely
K1 ERM
K1 Enterprise Risk Management
K1 Risk
K1 Performance
AB This paper evaluates the effect of Enterprise Risk Management (ERM) on the performance and the financial stability of a sample of non-financial Spanish listed companies. The information about ERM is taken from the annual reports, management reports and annual corporate governance reports disseminated over four years (2012−2015). The data on performance and financial stability have been obtained through the SABI (Iberian Balance Sheet Analysis System) and Morningstar Direct. The results obtained show that the adoption of ERM is not associated with a change in the performance of Spanish companies (measured through the return on equity, return on assets and Tobin’s Q) nor does it reduce the probability of bankruptcy. Having a chief risk officer (CRO) can actually reduce performance, although it can improve the degree of financial health measured as the distance to default. Regarding the relationship between the hedging of risks on the profitability and the level of risk, we find evidence of improvement through the hedging of exchange risk.
PB Elsevier
SN 2444-8834
YR 2020
FD 2020
LK https://hdl.handle.net/10347/40631
UL https://hdl.handle.net/10347/40631
LA eng
NO González, L. O., Santomil, P. D., & Herrera, A. T. (2020). The effect of Enterprise Risk Management on the risk and the performance of Spanish listed companies. European Research on Management and Business Economics, 26(3), 111-120.https://doi.org/10.1016/J.IEDEEN.2020.08.002
NO Ministry of Science, Innovation and Universities (MCIU) of Spain, the Spanish State Research Agency (AEI) and European Regional Development Fund (RTI2018-100702-B-I00 MCIU/AEI/FEDER, UE)
DS Minerva
RD 22 abr 2026