The Determinant of ERM Implementation: Evidence from an ERM Scoring Method

• In Event: Management Accounting 1

Abstract

Recent world crises have put enterprise risk management implementation as a top priority to be considered by most firms. Enterprise risk management is the effective tool for business to effectively managing related risks to achieve company's objectives. Regulators and financial consultants also support ERM initiation and implementation for most companies. However, less than half of listed companies are fully adoption ERM program. Which is firm-special characteristic influence to implement ERM? This paper aims to gain insight to the influential factor of ERM implement by using the ERM scoring method by measuring different stage of ERM implementation. Ordinal logistic regression technique use to examine factor associated with ERM scoring based on survey data gathering from Thai listed companies, we find that the better ERM scoring to be positive related to firm size and economic factor by industry. We also find listed companies with less-developed ERM have more market volatility than firms with well-implement ERM.

Author

• Juthamon Sithipolvanichgul, Thammasat University