Managing risk inside China: Insights from in-depth empirical analyses in manufacturing industry
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 individu...
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| Format: | Article |
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Institute of China Studies
2018
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| _version_ | 1825721441101807616 |
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| author | Zou, Xiang Isa, Che Ruhana Rahman, Mahfuzur |
| author_facet | Zou, Xiang Isa, Che Ruhana Rahman, Mahfuzur |
| author_sort | Zou, Xiang |
| collection | UM |
| description | 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. |
| first_indexed | 2024-03-06T05:50:23Z |
| format | Article |
| id | um.eprints-20158 |
| institution | Universiti Malaya |
| last_indexed | 2024-03-06T05:50:23Z |
| publishDate | 2018 |
| publisher | Institute of China Studies |
| record_format | dspace |
| spelling | um.eprints-201582019-01-25T02:16:58Z http://eprints.um.edu.my/20158/ Managing risk inside China: Insights from in-depth empirical analyses in manufacturing industry Zou, Xiang Isa, Che Ruhana Rahman, Mahfuzur HG Finance 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. Institute of China Studies 2018 Article PeerReviewed 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, https://www.um.edu.my/research-and-community/information-for-researchers/centers-of-research/institute-of-china-studies/publication/international-journal-of-china-studies-(ijcs) |
| spellingShingle | HG Finance Zou, Xiang Isa, Che Ruhana Rahman, Mahfuzur Managing risk inside China: Insights from in-depth empirical analyses in manufacturing industry |
| title | Managing risk inside China: Insights from in-depth empirical analyses in manufacturing industry |
| title_full | Managing risk inside China: Insights from in-depth empirical analyses in manufacturing industry |
| title_fullStr | Managing risk inside China: Insights from in-depth empirical analyses in manufacturing industry |
| title_full_unstemmed | Managing risk inside China: Insights from in-depth empirical analyses in manufacturing industry |
| title_short | Managing risk inside China: Insights from in-depth empirical analyses in manufacturing industry |
| title_sort | managing risk inside china insights from in depth empirical analyses in manufacturing industry |
| topic | HG Finance |
| work_keys_str_mv | AT zouxiang managingriskinsidechinainsightsfromindepthempiricalanalysesinmanufacturingindustry AT isacheruhana managingriskinsidechinainsightsfromindepthempiricalanalysesinmanufacturingindustry AT rahmanmahfuzur managingriskinsidechinainsightsfromindepthempiricalanalysesinmanufacturingindustry |