Abstract
The increasing bankruptcies, around the world, have triggered a debate on the relationship between risk management practices and their impact on the performance of manufacturing firms listed in Pakistani stock exchange. The prime objective of this study is to explore the link between enterprise risk management (ERM) and the performance of manufacturing firms in Pakistan. This study has also examined the mediating role of equity ownership in the relationship between enterprise risk management and the performance of manufacturing firms. The response rate is 64.1 percent. The SEM-PLS is used to analyze the data. The resource-based view and agency theory have used to develop the conceptual model of this study. The findings have provided support to the hypothesized results. The findings offer an in-depth and valuable insight into the issues related to enterprise risk management and the performance of manufacturing firms. Moreover, organizations become able to enhance their capabilities of operational and strategic decision-making. From a strategic perspective, the performance of a firm is increased by ERM along with a reduction in the costly surprises.
Disciplinary: Management and Financial Science. (C) 2020 INT TRANS J ENG MANAG SCI TECH.