ENTERPRISE RISK MANAGEMENT and FIRM VALUE Empirical Evidence from Turkey in the Post-Global Financial Crisis of 2007-08 Period

Yıl 2023, Cilt: 5 Sayı: 1, 87 - 100, 04.07.2023

Hüseyin Nazmi Kartal Demirgüneş

Öz

Though there is an intense concern of governments, corporations’ top managers, business magazines and B2B, professional and trade magazine publishers about risk management practices, both theoretical and empirical research in the field of enterprise risk management (ERM) is still rare. This study aims to fill the empirical research gap by analyzing the possible effects of ERM practices on firm value over the post-Global Financial Crisis of 2007-08 period on a sample of Borsa Istanbul (BIST) SME Industrial Index (XKOBI) firms for the period of 2014.q1-2022.q4. Research model of the study includes one dependent and four independent variables. The dependent variable is the market-to-book value ratio, a widely-used proxy for firm value in finance literature. Considering the literature, four firm-specific factors are included in the research model as independent variables as credit risk, foreign exchange risk, liquidity risk and financial leverage.
The empirical findings provide evidence that financial leverage has statistically significant and positive effect on firm value; while the other independent variables included in the research model as credit risk, foreign exchange risk and liquidity risk have statistically significant and negative effects on firm value.

Anahtar Kelimeler

Enterprise risk management, firm value, credit risk, foreign exchange risk, liquidity risk.

Kaynakça

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