Article Published In Vol.7 (Jan-Feb-2019)

Enterprise Risk Management and Firm Performance in Pakistan: Interaction effect of intellectual capital

Author : Sajjad Nawaz Khan, Engku Ismail Engku Ali, Kaleem Anjum and Muhammad Noman

Nowadays, business have attentive more to developed effective risk management practices to augment firm performance as manager, decision maker and policy makers are considering complete view of risk management despite of silo-based context. In current years, numbers of organizations have enhanced their performance by using ERM framework to manage varied range of risks due to this ERM is considered as much venerable practice in this era. This study examines the relationship between ERM on the firm performance with the moderating role of intellectual capital. The dependent variable firm performance measured by ROE. The data was collected by 130 non-financial listed firms from 2012 to 2015, for data analysis used multiple regression. The results indicate the positive but insignificant results between ERM and ROE. Moreover, the current study results indicating the significant positive moderating effect of IC between ERM and ROE. The current study has contributed empirically to various known relationships between the variables and expands the knowledge of literature and leaving certain aspects for future research.

Keywords: ERM, intellectual capital, firm performance