Moderating Effect of Enterprise Risk Management on the Relationship Between Board Structures and Corporate Performance

International Journal of Entrepreneurship and Management Practices, Volume: 2 Issues: 6, June, 2019 pp.01-15

15 Pages Posted: 5 Aug 2019

See all articles by Saddam Shatnawi

Saddam Shatnawi

Universiti Sains Islam Malaysia (USIM) - Faculty of Economics and Muamalat

Mustafa Hanefah

Universiti Sains Islam Malaysia (USIM) - Faculty of Economics and Muamalat

Monther Eldaia

Al-Aqsa University; Universiti Sains Islam Malaysia (USIM) - Faculty of Economics and Muamalat

Date Written: August 1, 2019

Abstract

Risk encroachment into Corporate Governance (CG) remains a continuous process that required an efficient and long-term solution. Using enterprise risk management (ERM) as a moderating variable on the relationship between board structures and corporate performance is remains an area unexploited in CG research. This relationship can effectively measure by the extent of ERM interactions between board structures and corporate performance. Despite various studies on CG mechanisms, firm performance, ERM implementation level, and gender diversity, the empirical results appeared inconclusive and the findings are inconsistent. None of the studies have addressed the role play by ERM as a moderator between director ownership, the board size, board independence, the total number of women on the board, number of Muslim directors on the board, and firm performance. It is demonstrated that the ERM has the potential to moderate between the different board structures and corporate performance, and this moderation has never been reported in the literature. It is expected that this ERM moderation may considerably improve corporate performance by determining the strength or weakness of the relationship between board structures and firm performance. Thus, this paper, with regards to available literature, conceptualized that ‘ERM’ moderates the relationship between Board Size, Board Independence, Director Ownership, Total Women in the Board, Muslim directors on the Board, and corporate performance.

Keywords: Board Structures, Corporate Performance, ERM, Moderating, Relationship

Suggested Citation

Shatnawi, Saddam and Hanefah, Mustafa and Eldaia, Monther, Moderating Effect of Enterprise Risk Management on the Relationship Between Board Structures and Corporate Performance (August 1, 2019). International Journal of Entrepreneurship and Management Practices, Volume: 2 Issues: 6, June, 2019 pp.01-15, Available at SSRN: https://ssrn.com/abstract=3430441 or http://dx.doi.org/10.2139/ssrn.3430441

Saddam Shatnawi

Universiti Sains Islam Malaysia (USIM) - Faculty of Economics and Muamalat

N.Sembilan
Malaysia

Mustafa Hanefah

Universiti Sains Islam Malaysia (USIM) - Faculty of Economics and Muamalat

N.Sembilan
Malaysia

Monther Eldaia (Contact Author)

Al-Aqsa University ( email )

Gaza Strip
gaza
Gaza, GA h 0599
Palestine
+970594709595 (Phone)

Universiti Sains Islam Malaysia (USIM) - Faculty of Economics and Muamalat ( email )

N.Sembilan
Malaysia

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