Document Type
Article
Publication Date
2022
DOI
10.21315/aamj2022.27.1.4
Publication Title
Asian Academy of Management Journal
Volume
27
Issue
1
Pages
79-103
Abstract
This paper investigates the effect of enterprise risk management (ERM) implementation on the cost of capital (cost of debt, cost of equity, and weighted average cost of capital) for the oil and gas industry. The research is conducted using panel data analysis from 2008-2017 for 41 oil and gas companies publicly listed on the Bursa Malaysia. ERM implementation data is collected from company annual reports, while the cost of capital data is obtained from Thomson Reuters DataStream. The results indicate that an increase in the level of ERM implementation reduces the cost of capital, which we argue is one mechanism through which ERM increases firm value. Future research can use our investigation to delve deeper into ERM and value creation topics.
Original Publication Citation
Shad, M. K., Lai, F.-W., Shamin, A., McShane, M. & Zahid, S. M. (2022). The relationship between enterprise risk management and cost of capital. Asian Academy of Management Journal, 27(1), 79-103. https://doi.org/10.21315/aamj2022.27.1.4
Repository Citation
Shad, Muhammad Kashif; Lai, Fong-Woon; Shamim, Amjad; McShane, Michael; and Zahid, Sheikh Muhammad, "The Relationship Between Enterprise Risk Management and Cost of Capital" (2022). Finance Faculty Publications. 37.
https://digitalcommons.odu.edu/finance_facpubs/37
Comments
© Asian Academy of Management and Penerbit Universiti Sains Malaysia, 2022.
This work is licensed under a Creative Commons Attribution 4.0 International (CC BY 4.0) License.