A Comprehensive Approach to Relationship between COSO ERM and Firm Performance in Construction Industry
Journal Title: International Research Journal of Applied and Basic Sciences - Year 2014, Vol 8, Issue 12
Abstract
The construction industry is one of the most dynamic, risky, and challenging businesses. Due to construction projects’ complexity and uniqueness, the number of risks present always goes beyond those found in other industries. Therefore, it seems to be rational that risk management to be applied as an integral part of activities in construction industry. Based on the reviewed literature scholars have reported a growth in the use of enterprise risk management among the organization. These scholars generally found that the adoption of an ERM program is positively associated with improved financial performance .Nevertheless, empirical studies conducted to date do not make a general statement about the effect of the program on firm performance. Therefore, the objective of the study is to examine the effect of COSO ERM adoption on firm performance. This study addressed the lack of the empirical studies by developing a comprehensive model to examine the relationship between COSO ERM adoption and firm performance. A quantitative methodology will be used to investigate the correlations paths. Using a cross-sectional survey method, data will be collected from 361 companies in the construction industry across the Iran. Hypothesized relationships will examine using structural equation modelling (SEM) based on Analysis of Moment Structures (AMOS). The indirect exploratory effect of the moderators will be conduct by examining using multi-group analysis (MGA) method. The results of this study can help organizations and academic bodies to expand their knowledge about.
Authors and Affiliations
Sanambar Tavakoli| PhD scholar, Department of Accounting and Finance, Faculty of Management, Universiti Teknologi Malaysia, Skudai Johor, Malaysia, email: tasanam@yahoo.com, Dr Noraini Abu Talib| Department of Business Administration, Faculty of Management, Universiti Teknologi Malaysia, Skudai Johor, Malaysia
Keywords
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