| Summary: | 碩士 === 國立中正大學 === 會計與資訊科技研究所 === 100 === Many studies show that the firm adopted the enterprise risk management (ERM) will improve the firm performance. Nevertheless, empirical evidence confirming this relation between ERM and firm performance is quite limited. The objective of this study is to examine empirically the argument that ERM is related to the firm performance. The basic argument in this study is that the relation between ERM and performance is upon the appropriate match between ERM and the following two factors: uncertainty and external monitoring.
According to the research samples of listed firms in Taiwan Stock Exchange and OTC stock exchange, the empirical results indicate that firms with the following situations will lend firms effort to execute ERM: high noise in earnings, high stock return, firms in a competitive industry and with high percentage of local institutional investor. Besides we found that if ERM is appropriate matched with the above two factors, the firms’ performance is much better. The implication of these findings is that the firms should consider the implement of an ERM system is conjunction with contextual variables surrounding the firms.
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