نوع مقاله : مقاله پژوهشی
عنوان مقاله English
نویسندگان English
Objective: Investors tend to allocate their resources to companies with the best performance in order to benefit from their returns. One of the factors that can significantly impact corporate performance is Enterprise Risk Management (ERM). This study examines the relationship between ERM and capital market reaction, and analyzes the moderating effect of institutional ownership on this relationship
Method: To test the research hypotheses, financial data from 120 companies listed on the Tehran Stock Exchange over the period 2018 to 2022 were used. The study employed pooled multivariate regression, controlling for year and industry effects.
Results: The results indicate that ERM acts as a control mechanism and has a positive relationship with capital market reaction. In other words, stronger ERM is associated with higher stock returns. However, the findings show that institutional investors have no moderating effect on the relationship between ERM and stock returns.
Conclusions: This study contributes to the existing literature on ERM. Investors should consider ERM as an indicator of a company’s market performance.
کلیدواژهها English
