THE IMPACT OF ENTERPRISE RISK MANAGEMENT ON THE FINANCIAL PERFORMANCE: CASE OF EGYPT AN EMPIRICAL STUDY | ||
| ERU Research Journal | ||
| Volume 4, Issue 4, October 2025, Pages 3407-3421 PDF (390.37 K) | ||
| Document Type: Original Article | ||
| DOI: 10.21608/erurj.2025.393090.1297 | ||
| Authors | ||
| Nehad Hosny Yusuf* ; Amr Mahmoud Abdelazeem; Mohamed Farouk Hafez | ||
| Accounting, Faculty of Management, Economics, and Business Technology, Egyptian Russian University, Badr city, Egypt | ||
| Abstract | ||
| In recent years, enterprise risk management (ERM) has attracted a lot of attention. Because it affects their ability to survive and thrive as a business, the majority of firms emphasize how important risk management is. This study's major objective is to explore and conduct an empirical investigation into the variables that affect a company's decision to implement an Enterprise Risk Management (ERM) system in Egypt. The current study concentrates on a sample of three leading companies that are traded on the "Egyptian Stock Exchange." To examine the hypotheses, a quantitative research strategy and regression analysis are developed. The results suggest that indicators such as return on equity (ROE), return on assets (ROA), and price-to-sales (P/S) valuation ratio might be used to assess profitability. Corporate governance (being listed on the S&P/EGX ESG index) and membership in the industrial sector may be favorable factors for the implementation of ERM. However, there is a negative correlation between ERM involvement and earnings before interest, taxes, depreciation, and amortization, or EBITDA. Unlike previous studies, the current study showed that profitability and liquidity had a favorable influence on the corporation's decision to use an ERM system. The following constitutes the current paper's originality. It contributes to the body of research on the factors that influence the use of ERM. Additionally, a context that has not before been explored in the literature is used to evaluate these reasons in Egypt. | ||
| Keywords | ||
| ERM; return on asset; return on equity; financial performance | ||
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