Managing risk inside China: Insights from in-depth empirical analyses in manufacturing industry

Zou, Xiang and Isa, Che Ruhana and Rahman, Mahfuzur (2018) Managing risk inside China: Insights from in-depth empirical analyses in manufacturing industry. International Journal of China Studies, 9 (1). pp. 97-118. ISSN 2180-3250

Full text not available from this repository.
Official URL: https://www.um.edu.my/research-and-community/infor...

Abstract

This article provides key insights into the valuation of enterprise risk management (ERM) inside China. According to data gathered from manufacturing industry in China, the article examined the implication of risk management within firms through the effect of ERM on the relationship between individual risks and risk portfolio, on the relationships among categorical risks and risk structure, and on the relationship between categorical risk and firm performance. In order to evaluate the benefits of ERM in a comprehensive manner, a covariance-based structural equation modeling (CBSEM) was adopted as the major method. The results revealed that ERM mitigated the association between individual risks and risk portfolio in China. In addition, the relationships among categorical risks in the risk structure were weakened as well. Since the relationship between categorical risks and firm performance became significantly weak when firms embraced with ERM, therefore, it implied that ERM can optimize the risk structure and add value to firm performance by managing risk in China.

Item Type: Article
Uncontrolled Keywords: China; Firm performance; Manufacturing industry; Risk management; Structural equation modeling
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Business and Accountancy
Depositing User: Ms. Juhaida Abd Rahim
Date Deposited: 25 Jan 2019 02:16
Last Modified: 25 Jan 2019 02:16
URI: http://eprints.um.edu.my/id/eprint/20158

Actions (login required)

View Item View Item