ERM usage and value premium for Norwegian firms
Master thesis
Permanent lenke
https://hdl.handle.net/11250/2825501Utgivelsesdato
2021Metadata
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- Master of Science [1613]
Sammendrag
This thesis examines the effect of risk management on firm value.
We test our main hypothesis that the implementation of ERM
provides a value premium relative to TRM usage. By identifying
ERM and TRM usage in Norwegian firms we estimate the additional
benefit of using the two risk-mitigating strategies by estimating
different versions of Tobin’s Q as a proxy for firm value. We find
statistically significant evidence indicating that ERM users are
rewarded with a higher firm value. Further, we find no evidence that
our results are explained by the occurrence of reverse causality.
However, we do not find evidence suggesting that ERM users are
successful in reducing the volatility of earnings or cash flow.
Beskrivelse
Masteroppgave(MSc) in Master of Science in Business, Finance - Handelshøyskolen BI, 2021