Abstract
The main objective of this study was to ascertain the determinants of enterprise risk management (ERM) adoption for manufacturing firms in Suzhou, China. Supported by the agency theory and resource dependence theory, eight determinants of ERM adoption were identified from extant literature and tested in this study. Since ERM adoption was treated as a dichotomous variable, the effect of the eight independent variables on ERM adoption was analysed by using the binomial logistic regression using the SPSS Statistical Software. Secondary data was obtained from the China Stock Database, annual reports and official websites of 108 manufacturing firms in Suzhou, China. This study recognised chief risk officer, institutional ownership, turnover, size, international diversification and profitability as significant predictors whereas leverage and cash ratio shown no impact on ERM adoption. This study provides policymakers with important guidelines on ERM adoption and contributes towards the development of the Chinese manufacturing market.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Business Continuity and Risk Management
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
