Firm Ownership and Enterprise Risk Management: Evidence from a Developing Country

This study examines the association between the ownership structure and enterprise risk management. Thefindings of the current study show that the enterprise risk management is significantly influenced by ownership structure. This study used secondary data of 200 Malaysian firms listed in Malaysian Stock Exchange (Bursa Malaysia) during the period 2014 to 2018. We use disperse ownership concentration and managerial ownership concentration as the proxy of ownership structure and correlate with the adoption of enterprise risk management. Our results are consistent with our hypothesis as we found the positive and significant relationship between enterprise risk management and ownership structure. Moreover, the results are consistent with the hypothesis that there is a positive relationship of disperse ownership structure with the adoption of enterprise risk management and negative relationship of managerial ownership with the adoption of enterprise risk management.