The impact of Enterprise Risk Management and Corporate Governance on Firm Value

Abstract

The aim of this dissertation is to investigate the impact of Enterprise Risk Management (ERM) and Corporate Governance on Firm Value. In particular, the first part of the thesis introduces the theory about Risk Management and its evolution until ERM, and discusses the relationship between ERM and Corporate Governance. Then, the study presents the empirical analysis in which the aim is to question whether the adoption of ERM and a structured Corporate Governance have a positive impact on firm value. In order to answer, a panel of data containing information about firms of the STOXX 50 Europe index has been constructed for the period going from 2019 to 2010. With this purpose, information regarding ERM's adoption have been found in the annual reports, while an index regarding the complexity of the corporate governance structure of each firm has been developed. In addition, an analysis on the determinants for ERM's adoption has been elaborated through a fixed effects logit regression.