Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/329623 
Year of Publication: 
2022
Citation: 
[Journal:] ACRN Journal of Finance and Risk Perspectives (JOFRP) [ISSN:] 2305-7394 [Volume:] 11 [Year:] 2022 [Pages:] 141-157
Publisher: 
ACRN Oxford Research Network, Oxford
Abstract: 
The escalation of complexity and multidimensional (internal and external) factors bring companies to a position where risk management should be of main concern. Enterprise Risk Management (ERM) adoption and the extent of ERM implementation is seen as a guaranteeing element to increase the value of the companies over the long term due to adequate risk awareness and risk management strategies in all relevant business functions. This study examines the extent of ERM implementation on the initial performance of companies in the Malaysian IPO market. Testing a sample of 105 Malaysian IPOs issued from January 2012 to December 2020 using a linear regression model, ERM sophistication is positively and significantly related to the initial performance of Malaysian IPOs, offering support to the proposition in this study. Equally important is the reciprocal of offer price, subscription ratio, and market condition, which are also significant factors in companies' post-IPO performance. This study benefits the market regulators and investors on the importance of ERM sophistication to companies' initial performance.
Subjects: 
Enterprise Risk Management
Initial Return
Initial Public Offerings
Malaysian IPO Market
JEL: 
G12
G31
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-sa Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.