Enterprise risk management and firm value within China’s insurance industry
- Li, Qiuying, Wu, Yue, Ojiako, Udechukwu, Marshall, Alasdair, Chipulu, Maxwell
- Authors: Li, Qiuying , Wu, Yue , Ojiako, Udechukwu , Marshall, Alasdair , Chipulu, Maxwell
- Date: 2014
- Subjects: Enterprise risk management , Insurance industry - China
- Type: Article
- Identifier: uj:5427 , http://hdl.handle.net/10210/11954
- Description: Orientation: The article discusses the relationship between enterprise risk management (ERM) and firm value. Research purpose: The purpose of the study is to empirically examine the relationship between ERM and firm value. The study is undertaken within the context of the Chinese insurance industry. Motivation for the study: Recent attempts to link ERM with firm value have been undertaken primarily in the USA and Europe and have produced ambiguous and inconclusive findings. Research design, approach and method: Data was obtained from the China Insurance Regulatory Commission, a government body responsible for regulating insurance products and services in China. The data sample consisted of 135 insurance companies operating in China (in 2010). Regression modelling is employed to analyse the data. Main findings: The results show the relationship between ERM and firm value at first appears statistically significant within a Pearson correlation matrix but then falls below statistical significance on closer scrutiny through regression analysis. Accordingly, it is recommended that insurers in China should not look to aggressive investment in ERM as a strategy for producing quick gains in firm value. Practical/managerial implications: Risk managers should plan ERM development from a risk management maturity perspective, which equates the highest level of ERM development with ERM’s capacity to improve firm resilience to the unknown and serve as a mechanism for strategic decision-making. Contribution/value-add: The study employed return on equity as a proxy for firm value, utilising ordinary least squares regression modelling to test propositions of the relationships between variables.
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- Authors: Li, Qiuying , Wu, Yue , Ojiako, Udechukwu , Marshall, Alasdair , Chipulu, Maxwell
- Date: 2014
- Subjects: Enterprise risk management , Insurance industry - China
- Type: Article
- Identifier: uj:5427 , http://hdl.handle.net/10210/11954
- Description: Orientation: The article discusses the relationship between enterprise risk management (ERM) and firm value. Research purpose: The purpose of the study is to empirically examine the relationship between ERM and firm value. The study is undertaken within the context of the Chinese insurance industry. Motivation for the study: Recent attempts to link ERM with firm value have been undertaken primarily in the USA and Europe and have produced ambiguous and inconclusive findings. Research design, approach and method: Data was obtained from the China Insurance Regulatory Commission, a government body responsible for regulating insurance products and services in China. The data sample consisted of 135 insurance companies operating in China (in 2010). Regression modelling is employed to analyse the data. Main findings: The results show the relationship between ERM and firm value at first appears statistically significant within a Pearson correlation matrix but then falls below statistical significance on closer scrutiny through regression analysis. Accordingly, it is recommended that insurers in China should not look to aggressive investment in ERM as a strategy for producing quick gains in firm value. Practical/managerial implications: Risk managers should plan ERM development from a risk management maturity perspective, which equates the highest level of ERM development with ERM’s capacity to improve firm resilience to the unknown and serve as a mechanism for strategic decision-making. Contribution/value-add: The study employed return on equity as a proxy for firm value, utilising ordinary least squares regression modelling to test propositions of the relationships between variables.
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Thematic elements underlying risk perception amongst small and medium enterprise owner-managers
- Ojiako, Udechukwu, Chipulu, Maxwell, Marshall, Alasdair, Baboolall, Poonam
- Authors: Ojiako, Udechukwu , Chipulu, Maxwell , Marshall, Alasdair , Baboolall, Poonam
- Date: 2014
- Subjects: Small to medium sized enterprises (SMEs) , SMEs - South Africa , Business entrepreneurship , SME risk , Small business - South Africa
- Type: Article
- Identifier: uj:5426 , http://hdl.handle.net/10210/11953
- Description: Orientation: The article discusses the parameters that underlie the perception of risk amongst SME owner-managers. Research purpose: This article draws on research suggesting that interactions between industry-sector (situational) differences and cognitive biases may often be decisive in moulding risk perceptions. Motivation for the study: Literature suggests that one of the most significant challenges facing entrepreneurs is the development of a clear understanding of what it means to experience and conceptualise ‘risk’ within the context of business entrepreneurship. Research design, approach and method: Utilising data obtained from a random sample of 446 SME owner-managers in the south-east of England, this study employs a combination of tests, including a non-parametric test, Chi-square test and Cramer’s V statistics test, to derive a series of thematic propositions that contribute to our understanding of how these entrepreneurs perceive decision risk. Main findings: Findings highlight the situational decision factors that influence SME ownermanagers to overemphasise possible negative outcomes, thus constraining the creative imagination upon which their entrepreneurship depends. Practical/managerial implications: It is generally accepted that decisions that may be highly innovative are not necessarily risky, unless the entity concerned is innovating in order to survive and its innovations have strategic significance. Based on this, we posit that there is an urgent need for entrepreneurs to focus less on risk associated with innovation and more on comprehensive analysis of all risk and uncertainty present around business-critical decisions. Contribution/value-add: This study contributes to growing research examining the relationship between SME risk and innovation, which is at present sparse.
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- Authors: Ojiako, Udechukwu , Chipulu, Maxwell , Marshall, Alasdair , Baboolall, Poonam
- Date: 2014
- Subjects: Small to medium sized enterprises (SMEs) , SMEs - South Africa , Business entrepreneurship , SME risk , Small business - South Africa
- Type: Article
- Identifier: uj:5426 , http://hdl.handle.net/10210/11953
- Description: Orientation: The article discusses the parameters that underlie the perception of risk amongst SME owner-managers. Research purpose: This article draws on research suggesting that interactions between industry-sector (situational) differences and cognitive biases may often be decisive in moulding risk perceptions. Motivation for the study: Literature suggests that one of the most significant challenges facing entrepreneurs is the development of a clear understanding of what it means to experience and conceptualise ‘risk’ within the context of business entrepreneurship. Research design, approach and method: Utilising data obtained from a random sample of 446 SME owner-managers in the south-east of England, this study employs a combination of tests, including a non-parametric test, Chi-square test and Cramer’s V statistics test, to derive a series of thematic propositions that contribute to our understanding of how these entrepreneurs perceive decision risk. Main findings: Findings highlight the situational decision factors that influence SME ownermanagers to overemphasise possible negative outcomes, thus constraining the creative imagination upon which their entrepreneurship depends. Practical/managerial implications: It is generally accepted that decisions that may be highly innovative are not necessarily risky, unless the entity concerned is innovating in order to survive and its innovations have strategic significance. Based on this, we posit that there is an urgent need for entrepreneurs to focus less on risk associated with innovation and more on comprehensive analysis of all risk and uncertainty present around business-critical decisions. Contribution/value-add: This study contributes to growing research examining the relationship between SME risk and innovation, which is at present sparse.
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Optimisation of key performance measures in air cargo demand management
- May, Alexander, Anslow, Adrian, Ojiako, Udechukwu, Wu, Yue, Marshall, Alasdair, Chipulu, Maxwell
- Authors: May, Alexander , Anslow, Adrian , Ojiako, Udechukwu , Wu, Yue , Marshall, Alasdair , Chipulu, Maxwell
- Date: 2014
- Subjects: Air cargo operations , Air cargo revenue management
- Type: Article
- Identifier: uj:5428 , ISSN 1995-5235 , http://hdl.handle.net/10210/11955
- Description: This article sought to facilitate the optimisation of key performance measures utilised for demand management in air cargo operations. The focus was on the Revenue Management team at Virgin Atlantic Cargo and a fuzzy group decision-making method was used. Utilising intelligent fuzzy multi-criteria methods, the authors generated a ranking order of ten key outcome-based performance indicators for Virgin Atlantic air cargo Revenue Management. The result of this industry-driven study showed that for Air Cargo Revenue Management, ‘Network Optimisation’ represents a critical outcome-based performance indicator. This collaborative study contributes to existing logistics management literature, especially in the area of Revenue Management, and it seeks to enhance Revenue Management practice. It also provides a platform for Air Cargo operators seeking to improve reliability values for their key performance indicators as a means of enhancing operational monitoring power.
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- Authors: May, Alexander , Anslow, Adrian , Ojiako, Udechukwu , Wu, Yue , Marshall, Alasdair , Chipulu, Maxwell
- Date: 2014
- Subjects: Air cargo operations , Air cargo revenue management
- Type: Article
- Identifier: uj:5428 , ISSN 1995-5235 , http://hdl.handle.net/10210/11955
- Description: This article sought to facilitate the optimisation of key performance measures utilised for demand management in air cargo operations. The focus was on the Revenue Management team at Virgin Atlantic Cargo and a fuzzy group decision-making method was used. Utilising intelligent fuzzy multi-criteria methods, the authors generated a ranking order of ten key outcome-based performance indicators for Virgin Atlantic air cargo Revenue Management. The result of this industry-driven study showed that for Air Cargo Revenue Management, ‘Network Optimisation’ represents a critical outcome-based performance indicator. This collaborative study contributes to existing logistics management literature, especially in the area of Revenue Management, and it seeks to enhance Revenue Management practice. It also provides a platform for Air Cargo operators seeking to improve reliability values for their key performance indicators as a means of enhancing operational monitoring power.
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